Strategic product pre-announcements in markets with network effects

Jay Pil Choi, Eirik Gaard Kristiansen, Jae Hyon Nahm

Research output: Contribution to journalArticle

Abstract

Firms often announce new products well in advance of their actual market availability. The incentives for pre-announcements are conceived to be stronger in markets with network effects because they can be used to induce the delay of consumers purchases and forestall the build-up of rival products installed bases. However, such announcements often are not fulfilled, raising antitrust concerns. We analyze the effects of product pre-announcements in the presence of network effects when firms strategically make false announcements. We also discuss their implications for consumer welfare.

Original languageEnglish
Pages (from-to)1-20
Number of pages20
JournalHitotsubashi Journal of Economics
Volume60
Issue number1
DOIs
Publication statusPublished - 2019 Jan 1

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Preannouncements
Announcement
Network effects
Purchase
Incentives
Consumer welfare
New products

Keywords

  • D8
  • Network effects
  • Product pre-announcements
  • Reputation JEL Classification Codes: L1
  • Technology adoption

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

Cite this

Strategic product pre-announcements in markets with network effects. / Choi, Jay Pil; Kristiansen, Eirik Gaard; Nahm, Jae Hyon.

In: Hitotsubashi Journal of Economics, Vol. 60, No. 1, 01.01.2019, p. 1-20.

Research output: Contribution to journalArticle

Choi, Jay Pil ; Kristiansen, Eirik Gaard ; Nahm, Jae Hyon. / Strategic product pre-announcements in markets with network effects. In: Hitotsubashi Journal of Economics. 2019 ; Vol. 60, No. 1. pp. 1-20.
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