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Two-part tariffs in the Online Gaming Industry: The Role of Creative Destruction and Network Externalities

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dc.contributor.authorMeagher, Kieron
dc.contributor.authorTeo, Ernie G S
dc.date.accessioned2015-12-07T22:20:43Z
dc.date.issued2005
dc.date.updated2015-12-07T08:49:25Z
dc.description.abstractPlaying 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destruction, Econometrica, 60(2), 323-351], with game makers experiencing market power within a genre until the game is superceded.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.
dc.identifier.issn0167-6245
dc.identifier.urihttp://hdl.handle.net/1885/19708
dc.publisherElsevier
dc.sourceInformation Economics and Policy
dc.subjectKeywords: Computer applications; Industrial economics; Industry; Internet; Marketing; Mathematical models; Theorem proving; Computer games; Creative destruction; Network externalities; Online gaming; Two-part tariff; Online systems; gambling; Internet; recreational Computer games; Creative destruction; Internet; Network externalities; Two-part tariff
dc.titleTwo-part tariffs in the Online Gaming Industry: The Role of Creative Destruction and Network Externalities
dc.typeJournal article
local.bibliographicCitation.issue4
local.bibliographicCitation.lastpage470
local.bibliographicCitation.startpage457
local.contributor.affiliationMeagher, Kieron, College of Business and Economics, ANU
local.contributor.affiliationTeo, Ernie G S, University of New South Wales
local.contributor.authoruidMeagher, Kieron, u3802067
local.description.embargo2037-12-31
local.description.notesImported from ARIES
local.identifier.absfor140209 - Industry Economics and Industrial Organisation
local.identifier.absseo910203 - Industrial Organisations
local.identifier.ariespublicationu4505044xPUB9
local.identifier.citationvolume17
local.identifier.doi10.1016/j.infoecopol.2005.02.003
local.identifier.scopusID2-s2.0-25144500990
local.type.statusPublished Version

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