Pricing a Network Good To Deter Entry
研究了网络产品的在位者如何通过低价策略阻止潜在进入者，发现用户基础可发挥类似产能投资的先发制人作用，并分析了福利影响。
This paper develops a model of pricing to deter entry by a sole supplier of a network good. We show that the installed user base of a network good can serve a preemptive function similar to that of an investment in capacity if the entrant’s good is incompatible with the incumbent’s good and there are network externalities in demand. Consequently, the threat of entry can lead the incumbent to set low prices. We identify some factors that should be considered in thinking about the welfare effects of entry deterrence in this and similar models.