• 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
    • 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

Markets and Network Externalities

New Media  | 15 de febrero de 2005  | Vistas: 2880

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.


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…


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