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Estimating network externalities and switching costs using individual users' data

Research Project

Project/Area Number 16330044
Research Category

Grant-in-Aid for Scientific Research (B)

Allocation TypeSingle-year Grants
Section一般
Research Field Applied economics
Research InstitutionKeio University

Principal Investigator

TANAKA Tatsuo  Keio University, Department of Economics, Associate Professor, 経済学部, 助教授 (70236602)

Co-Investigator(Kenkyū-buntansha) KAWAI Hiroki  Keio University, Department of Economics, Associate Professor, 経済学部, 助教授 (00276396)
YASAKI Yoshihito  Kougakuin University, Department of Global Engineering, Assistant Professor, グローバルエンジニアリング学部, 専任講師 (10345150)
MURAKAMI Reiko  Kinki University, Department of Economics, Assistant Professor, 経済学部, 専任講師 (30411565)
Project Period (FY) 2004 – 2006
Project Status Completed (Fiscal Year 2006)
Budget Amount *help
¥14,200,000 (Direct Cost: ¥14,200,000)
Fiscal Year 2006: ¥2,600,000 (Direct Cost: ¥2,600,000)
Fiscal Year 2005: ¥4,600,000 (Direct Cost: ¥4,600,000)
Fiscal Year 2004: ¥7,000,000 (Direct Cost: ¥7,000,000)
KeywordsNetwork Externality / Switching Cost / Application Software / Discrete Choice
Research Abstract

Network externalities and switching cost are estimated using individual users survey. Regarding the operating system of personal computers, there is a strong network externalities which even 10 years technological advantage can't overcome. Thus, it is very difficult for new firms enter the operating system market with a new technology. This result suggests that the operating system market is monopolized and competition pressure is weak.
As for IP phone market, on the other hand, network externalities are not so strong. Estimated network externalities and switching cost are equivalent to 600yen and 300yen respectively which can be easily overcome by efficient new entry firm with new technologies.
Router market's network externalities are not significant sometimes. Although switching costs are larger than network externalities, it is easily overcome by technological innovations.

Report

(4 results)
  • 2006 Annual Research Report   Final Research Report Summary
  • 2005 Annual Research Report
  • 2004 Annual Research Report
  • Research Products

    (11 results)

All 2006 2005 2004 Other

All Journal Article (11 results)

  • [Journal Article] Contribution-Proportional Remuneration Rule for Employee Inventions and Its Effects on Effort and Investment Incentives2006

    • Author(s)
      Yasaki, Yoshihito, Akira Goto
    • Journal Title

      Economics of Innovation and New Technology

    • Description
      「研究成果報告書概要(和文)」より
    • Related Report
      2006 Final Research Report Summary
  • [Journal Article] Contribution-Proportional Remuneration Rule for Employee Inventions and Its Effects on Effort and Investment Incentives,2006

    • Author(s)
      Yasaki, Yoshihito, Akira Goto
    • Journal Title

      Economics of Innovation and New Technology

    • Description
      「研究成果報告書概要(欧文)」より
    • Related Report
      2006 Final Research Report Summary
  • [Journal Article] 特許・標準・イノベーション2006

    • Author(s)
      後藤晃, 矢崎敬人
    • Journal Title

      財)知的財産研究所編『「アンチコモンズの悲劇」に関する諸問題の分析報告書』(平成17年度特許庁産業財産権制度問題調査研究報告書) (所収)

      Pages: 126-136

    • Related Report
      2005 Annual Research Report
  • [Journal Article] Contribution-Proportional Remuneration Rule for Employee Inventions and Its Effects on Effort and Investment Incentives,2006

    • Author(s)
      Yasaki, Yoshihito, Akira Goto
    • Journal Title

      Economics of Innovation and New Technology, (forthcoming)(未定)

    • Related Report
      2005 Annual Research Report
  • [Journal Article] Network Effects and Switching Costs in the Japanese Market for VoIP2005

    • Author(s)
      Reiko Murakami
    • Journal Title

      International Industrial Organization Conference, Atlanta, US Apr.2005

    • Description
      「研究成果報告書概要(和文)」より
    • Related Report
      2006 Final Research Report Summary 2005 Annual Research Report
  • [Journal Article] 特許・標準・イノベーション2005

    • Author(s)
      後藤晃, 矢崎敬人
    • Journal Title

      「アンチコモンズの悲劇」に関する諸問題の分析報告書(平成17年度特許庁産業財産権制度問題調査研究報告書)。(財)知的財産研究所編) (所収)

      Pages: 126-136

    • Description
      「研究成果報告書概要(和文)」より
    • Related Report
      2006 Final Research Report Summary
  • [Journal Article] Network Effects and Switching Costs in the Japanese Market for VoIP2005

    • Author(s)
      Reiko Murakami
    • Journal Title

      International Industrial Organization Conference, Atlanta, US

    • Description
      「研究成果報告書概要(欧文)」より
    • Related Report
      2006 Final Research Report Summary
  • [Journal Article] Patent, Standard, and Innovation2005

    • Author(s)
      Yasaki, Yoshihito, Akira Goto
    • Journal Title

      Report on issues of tragedy of Anti-commons(Japan Patent Office)

    • Description
      「研究成果報告書概要(欧文)」より
    • Related Report
      2006 Final Research Report Summary
  • [Journal Article] Network Externalities in the Japanese Market for of Routers2004

    • Author(s)
      Tanaka, Tatsuo, Reiko Murakami
    • Journal Title

      International Industrial Organization Conference in Chicago, April 23-24 2004

    • Related Report
      2004 Annual Research Report
  • [Journal Article] ブロードバンド・サービスの競争実態に関する調査2004

    • Author(s)
      田中辰雄, 矢崎敬人, 村上礼子
    • Journal Title

      公正取引 648

      Pages: 12-17

    • Related Report
      2004 Annual Research Report
  • [Journal Article] Competition Policy in the presence of Network Externalities : A Policy Framework with Applications to Spreadsheet, Word Processor and Router Markets in Japan,

    • Author(s)
      Tatsuo TANAKA, Yoshihiko Yasaki, Reiko Murakami
    • Journal Title

      Anti-Trust Bulletin (in progress)

    • Description
      「研究成果報告書概要(欧文)」より
    • Related Report
      2006 Final Research Report Summary

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Published: 2004-04-01   Modified: 2016-04-21  

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