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Two-part tariffs in the online gaming industry: The role of creative destruction and network externalities [An article from: Information Economics and Policy] | ![Two-part tariffs in the online gaming industry: The role of creative destruction and network externalities [An article from: Information Economics and Policy]](http://ecx.images-amazon.com/images/I/41YCXWBW4XL._SL160_.jpg)
 enlarge | Authors: K. Meagher, E.g.s. Teo
Publisher: Elsevier
Category: Book
Buy New: $8.95
Format: Html
Media: Digital
ASIN: B000RR55VA
Availability: Available for download now
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Product Description
This digital document is a journal article from Information Economics and Policy, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
Playing computer games online is a fast growing, billion dollar industry which has received little academic attention. The industry exhibits a number of interesting economic features. The industry structure is determined by creative destruction as in Aghion and Howitt (1992) [Aghion, P., Howitt, P. 1992. A model of growth through creative destruction, Econometrica, 60(2), 323-351], with game makers experiencing market power within a genre until the game is superceded. Furthermore, the attractiveness of playing a game online depends on the existence of opponents (positive network externalities) while technical and reputational problems eventually arise (negative network externalities). We model the choice of two-part tariffs by a monopolist under creative destruction and network externalities and derive conditions for the multiple equilibria which currently exist in the industry.
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