Product Emulation Strategies in The Presence of Reputation Effects And Network Externalities: Some Evidence From The Minicomputer Industry |
| |
| Authors: | Raymond S Hartman David J Teece |
| |
| Affiliation: | 1. Department of Economics , Boston University , Boston, MA, 02215;2. School of Business Administration, University of California , Berkeley, CA, 94720 |
| |
| Abstract: | A model of firm performance in the minicomputer industry is developed and estimated. We use an hedonic price formulation to analyze product design and pricing issues and a market share model to assess the demand effects of price-performance characteristics, installed base advantages and manufacturer reputation. The results, which are based on 1976–1983 data, demonstrate the importance of network externalities, price-performance competition and reputation. We utilize the estimated models to quantify the implications of several emulation strategies and several defensive strategies of incumbent manufacturers. |
| |
| Keywords: | minicomputer industry hedonic price formulation price-performance characteristics network externalities reputation |
|
|
