期刊
PERFORMANCE EVALUATION
卷 120, 期 -, 页码 36-48出版社
ELSEVIER SCIENCE BV
DOI: 10.1016/j.peva.2018.01.001
关键词
Capacity provisioning; Network effects; Competition; Congestion; Cloud services; Monopoly
资金
- DST
- CEFIPRA
- NSF [AST-1343381, AST-1516075, IIS-1538827, ECCS-1608361, CNS-1518941, CNS-1319820]
- Direct For Mathematical & Physical Scien
- Division Of Astronomical Sciences [1343381] Funding Source: National Science Foundation
Motivated by cloud services, we consider the interplay of network effects, congestion, and competition in ad-supported services. We study the strategic interactions between competing service providers and a user base, modeling congestion sensitivity and two forms of positive network effects: network effects that are either firm-specific or industry-wide. Our analysis reveals that users are generally no better off due to the competition in a marketplace of ad-supported services. Further, our analysis highlights an important contrast between firm-specific and industry-wide network effects: Firms can coexist in a marketplace with industry-wide network effects, but near-monopolies tend to emerge in marketplaces with firm-specific network effects. (C) 2018 Elsevier B.V. All rights reserved.
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