Privatisation and liberalisation in an industry with network externalities

Johan Willner

doi:10.1016/j.econlet.2005.11.016

Privatisation and liberalisation in an industry with network externalities

Johan Willner

Nationalekonomi

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Network externalities and sunk costs can make a profit-maximising monopoly superior to competition even if a large number of firms can enter. Competition can outperform a public monopoly only if sunk costs become significantly lower. © 2005 Elsevier B.V. All rights reserved.

Originalspråk	Engelska
Sidor (från-till)	197-203
Antal sidor	7
Tidskrift	Economics Letters
Volym	91
Utgåva	2
DOI	https://doi.org/10.1016/j.econlet.2005.11.016
Status	Publicerad - maj 2006
MoE-publikationstyp	A1 Tidskriftsartikel-refererad

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title = "Privatisation and liberalisation in an industry with network externalities",

abstract = "Network externalities and sunk costs can make a profit-maximising monopoly superior to competition even if a large number of firms can enter. Competition can outperform a public monopoly only if sunk costs become significantly lower. {\textcopyright} 2005 Elsevier B.V. All rights reserved.",

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Privatisation and liberalisation in an industry with network externalities

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