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首页> 外文期刊>Electronic Commerce Research >Competition in wearable device market: the effect of network externality and product compatibility
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Competition in wearable device market: the effect of network externality and product compatibility

机译：可穿戴设备市场的竞争：网络外部性和产品兼容性的影响

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摘要

The rapid growth in consumer adoption of wearable devices has garnered the attention of both practitioners and academia. Competition in the wearable device market is both substantial and complicated. In this study, we investigate the impact of network externality on wearable device competition in a two-dimensional product differentiation model. We consider a market that has a broad array of products (horizontal differentiation) and various quality levels (vertical differentiation). We study two types of network externalities according to the product compatibility in two types of market structures. Our model indicates that firm profits are decreased by network externalities in horizontal dominance. Network externality also increases (decreases) the higher-quality (lower-quality) firm's profit in vertical dominance. Moreover, firms should ensure that their products are incompatible with those of rivals when network externality is large, and they should release compatible products when network externality is small in horizontal dominance. Firms should always ensure that their products are compatible with those of competitors in vertical dominance.
机译：消费者对可穿戴设备的采用迅速增长，已经引起了从业者和学术界的关注。可穿戴设备市场的竞争既激烈又复杂。在这项研究中，我们调查了二维产品差异化模型中网络外部性对可穿戴设备竞争的影响。我们考虑的市场中有各种各样的产品（水平差异）和各种质量水平（垂直差异）。我们根据两种市场结构中的产品兼容性来研究两种类型的网络外部性。我们的模型表明，在水平支配地位的网络外部性会降低企业利润。网络外部性也增加（减少）了较高质量（较低质量）的公司在垂直支配地位上的利润。此外，当网络外部性较大时，公司应确保其产品与竞争对手的产品不兼容，而当网络外部性在水平优势较小时，它们应发布兼容产品。企业应始终确保其产品在纵向优势方面与竞争对手的产品兼容。

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