1 indirect network effects and the product cycle video games in us 1994 2002 matthew t clements hiroshi ohashi we examine importance of game market between diffusion systems is analyzed by interaction console adoption decisions software supply estimation results suggest that introductory pricing an effective practice at beginning expanding variety becomes more later also find a degree inertia does not exist hardware this observation implies providers continue to exploit installed base users after demand has slowed i introduction many high tech products exhibit wherein value individual increases with total number often these operate indirectly through for complementary good example cd player depends on cds available as owners players other examples include dvd discs computer paper
