Dynamic mixed duopoly
Subtitle: a model motivated by Linux vs. Windows
By: Ramon Casadesus-Masanell, Pankaj Ghemawat
Contributors: Ghemawat, Pankaj; Harvard Business School. Division of Research
Edition: Rev.
Series: Working paper / Division of Research, Harvard Business School -- 04-012; Working paper (Harvard Business School. Division of Research) -- 04-012
Publisher: Division of Research, Harvard Business School
Published: 2004
Place of publication: Boston
Language: eng
Number of pages: 19
Description: This paper analyzes a dynamic mixed duopoly in which a profit-maximizing competitor interacts with a competitor that prices at zero (or marginal cost), with the cumulation of output affecting their relative positions over time. The modeling effort is motivated by interactions between Linux, an open-source operating system, and Microsoft's Windows in the computer server segment, and consequently emphasizes demand-side learning effects that generate dynamic scale economies (or network externalities). Analytical characterizations of the equilibrium under such conditions are offered, and
Notes: "Revised August 2004."

Includes bibliographical references.