Positive Network Externalities and Negative Environmental Externalities in a Differentiated Duopoly With Entry Fee‐Refund Policy.

Most of the studies on the implications of externalities rarely consider the coexistence of positive network externalities and negative externalities. This paper examines the effect of net externalities in price competition and the effectiveness of the entry fee‐refund policy. We show that the posit...

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Publicado en:American Journal of Economics & Sociology Vol. 84; no. 5; pp. 773 - 780
Autores principales: Wu, Di, Lee, Jen‐Yao, Wang, Leonard F. S.
Formato: Artículo
Publicado: Wiley-Blackwell Nov2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Nov2025
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      tig:
        atl: Positive Network Externalities and Negative Environmental Externalities in a Differentiated Duopoly With Entry Fee‐Refund Policy.
      aug:
        au:
          Wu, Di
          Lee, Jen‐Yao
          Wang, Leonard F. S.
        affil:
          Institute of International Economics, School of Economics, Nankai University, Tianjin, China
          Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan
          Center for Global Operation and Enterprise Development, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan
      su:
        Network effect
        Economic policy
        Welfare economics
        Economic competition
        Consumers' surplus
        Profitability
        Duopolies
      sug:
        subj:
          Network effect
          Economic policy
          Welfare economics
          Economic competition
          Consumers' surplus
          Profitability
          Duopolies
      keyword:
        entry fee‐refund policy
        negative externality
        positive network externalities
        price competition
        entry fee‐refund policy
        negative externality
        positive network externalities
        price competition
      ab: Most of the studies on the implications of externalities rarely consider the coexistence of positive network externalities and negative externalities. This paper examines the effect of net externalities in price competition and the effectiveness of the entry fee‐refund policy. We show that the positive network externalities improve profits, consumer surplus, and social welfare, while negative externalities reduce them. The implementation of an entry fee‐refund policy reduces firms' profits, but further improves consumer surplus and social welfare. An increase of positive network externalities makes such policy more effective, but the effect is weakened by negative externalities.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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