00:01    |    
Initial credits
00:20    |    
Introduction by Dr. Wenceslao Giménez-Bonet
02:57    |    
The importance of market network externalities
03:19    |    
Types of markets and competition
04:44    |    
Basic ideas
Product selection
Compatibility decisions
Pricing, advertising and innovation
Public policy
15:04    |    
Positive network externality: Bandwagon effect
22:33    |    
Negative network externality: Snob effect
26:58    |    
Multiple equilibria
Examples
Compact Disk players
Digital Audio Tape players
DivX players
40:39    |    
How firms compete
The total profits
49:41    |    
The case of Sony and Phillips
58:03    |    
The case of Toshiba and Sony
58:33    |    
Final credits



Share

Video:

Embed:

Markets and Network Externalities

15 de febrero de 2005   | Vistas: 2797 |  

About this video

Markets with network externalities have become extremely important in the world of economics and management. Robert S. Pindyck explains that network externalities do not compete in the market but for the market and mentions that the forces that affect consumers' choices do not only depend on the product itself but on how many other people use it. He shares the example of VHS and BETA markets as well as Microsoft Word and WordPerfect. He also analyzes both positive and negative network externalities and comments on the Rolex watches market. Finally, Pindyck discusses the competition process between firms by sharing a mathematical formula and explains the case of Sony and Phillips market for compact disks, and Sony and Toshiba market for high definition DVD.



Credits

Markets and Network Externalities
Robert S. Pindyck

Friedrich A. Hayek Auditorium
Universidad Francisco Marroquín
Guatemala, February 15, 2005

A New Media - UFM production. Guatemala, February 2005
Camera: Jorge Samayoa; digital editing: Alexander Arauz; index: Inés Zuñiga; synopsis: Sebastian del Buey; synopsis reviser: Daphne Ortiz; publication: Pedro David España


Robert S. Pindyck is Professor of Economics and Finance in the Massachussets Institute of Technology (MIT) and Bank of Tokyo-Mitsubishi…

IDEAS DE LA LIBERTAD

Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín