Components Incompatibility, A Way for Monopolization in Services

Subject Areas : Labor and Demographic Economics

kiumars shahbazi ¹ , jalil badpeyma ²

1 - Associate Professor at Department of Economics, University of Urmia, Iran
2 - Ph.D. University of Urmia Economics

Received: 2018-11-20 Accepted : 2018-11-20 Published : 2018-07-23

Keywords: L96, Monopoly, JEL Classification: L15, D21. Keywords: Incompatibility, Production Equipment, Static Game with Imperfect Information,

Abstract :

The purpose of this article is to achieve the compatibility equilibrium of components. For this purpose, the components compatibility was investigated in the production equipment producers.  In this research, a game has been designed in three stages with considering the available alternatives for equipment producers and service providers, in which the firms decide about compatibility before price competition in selling stages and providing services. Then, by means of static games solution with imperfect information, the game equilibrium has been exploited. The modeling results showed that the component incompatibility is the game equilibrium and the firms with monopolization incentives in providing the after sale services, produce own provided outputs under an incompatible situation. Based on results, is suggested the production equipment byers, if possible before purchase, evaluate the rate of breakdown of production equipment, and also, concurrent with purchasing the system, buy the spare parts.

References:

 

-     سوری، علی (1391). نظریه بازی‌ها و کاربردهای آن. انتشارات دانشگاه علوم اقتصادی، تهران.

-     شای، آز (1393). سازمان صنعتی: نظریه و کاربردها. ترجمه: کیومرث شهبازی. مرکز نشر دانشگاهی، تهران.

-     شهیکی‌تاش، محمدنبی، نوروزی، علی (1393). محاسبه پارامتریک شاخص لرنر و ارزیابی رقابت و درجه انحصار صنایع ایران. فصلنامه مدلسازی اقتصادی، 3(27): 71-89.

-     عبدلی، قهرمان (1386). نظریه بازی­ها و کاربردهای آن(بازی های ایستا و پویا با اطلاعات کامل). انتشارات جهاد دانشگاهی دانشگاه تهران، تهران.

-     عبدلی، قهرمان (1391). نظریه بازی­ها و کاربردهای آن( بازی‌های اطلاعات ناقص، تکاملی و همکارانه). انتشارات سمت، تهران.

-     مس‌کالل، ای، وینستون، ام­دی، گرین، جی­آر (1394). اقتصاد خرد (ترجمه: دشتبان­فاروجی، مجید، جباری، امیر و فرامرزی، ایوب). انتشارات نور علم، تهران.

-      Athanasopoulos, T. (2016). Compatibility, Intellectual Property, Innovation and Welfare in Durable Goods Markets with Network Effects. CRESSE Conference.

-      Denicolo, V. (2000). Compatibility and bundling with generalist and specialist firms. The Journal of Industrial Economics, 48(2): 177-188.

-      Economides, N. (1989). Desirability of compatibility in the absence of network externalities. American Economic Review, 79: 1165-1181.

-      Economides, N. (1991). Compatibility and Market Structure for Network Goods. NYU Stern School of Business Discussion Paper No, 98-102.

-      Economides, N., & White, L. J.  (1994). Networks and Compatibility: Implications for Antitrust. European Economic Review, 38: 651-662.

-      Farrell, J., & Saloner, G. (1985). Standardization, compatibility, and innovation. Rand Journal of Economics, 16(1):70-83.

-      Farrell, J., & Saloner, G. (1992). Converters, Compatibility, and the Control of Interfaces. Journal of Industrial Economics, 40: 9-35.

-      Farrell, J., & Simcoe, T. (2012). Four Paths to Compatibility. Oxford University Press.

-      Gibbons, R. (1997). An Introduction to Applicable Game Theory. Journal of Economic Perspective, 11(1):127-149.

-      Katz, M. L., & Shapiro, C. (1985). Network externalities, Competition, and Compatibility. American Economic Review, 75(3): 424-440.

-      Katz, M. L., & Shapiro, C. (1994). Systems competition and network effects. Journal of Economic Perspectives, 8(2): 93-115.

-      Li, J. (2017). Compatibility AND Investment in U.S. Electric Vehicle Market. Environmental Economics and Policy Seminar.

-      Matutes, C., & Regibeau, P. (1988). "Mix and match": product compatibility without network externalities. Rand Journal of Economics, 19(2): 221-234.

-      Sang-Hyun K., & Choi, J. P. (2015). Optimal Compatibility in Systems Markets. Journal of Games and Economic Behavior, 90(1):106–118.