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Chinese Journal of Management Science ›› 2005, Vol. ›› Issue (6): 131-135.

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Network Externality and the Analysis of Enterprise Vertical Merger

CHENG Gui-sun, CHEN Hong-min, SUN Wu-jun   

  1. Antai School of Management, Shanghai Jiaotong University, Shanghai 200052, China
  • Received:2005-05-12 Revised:2005-11-20 Online:2005-12-28 Published:2012-03-07

Abstract: Through the model of product vertical differentiation,the paper analyzes whether there is the motive of enterprise vertical integration and unintegration in the product with network externality.The results show the enterprises have more motive to carry out the strategy of vertical merger and integration in the product market with network externality.And it shows for enterprise or consumer,that the equilibrium in the market structure of vertical integration is superior to one in the market structure of unintegrated monopolists.

Key words: network externality, quality, vertical merger

CLC Number: