Estimating network externalities and switching costs using individual users' data

• Project/Area Number: 16330044
• Research Category: Grant-in-Aid for Scientific Research (B)
• Allocation Type: Single-year Grants
• Section: 一般
• Research Field: Applied economics
• Research Institution: Keio 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: ¥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)
• Keywords: Network 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.

Research Products

• [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(和文)」より
• [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
• [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
• [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)
• [Journal Article] Network Effects and Switching Costs in the Japanese Market for VoIP (2005)
  • 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
• [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
• [Journal Article] Network Effects and Switching Costs in the Japanese Market for VoIP (2005)
  • 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
• [Journal Article] Patent, Standard, and Innovation (2005)
  • 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
• [Journal Article] Network Externalities in the Japanese Market for of Routers (2004)
  • Author(s): Tanaka, Tatsuo, Reiko Murakami
  • Journal Title: International Industrial Organization Conference in Chicago, April 23-24 2004
• [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
• [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