network effects and competition an empirical analysis of the home video game industry venkatesh shankar robert h smith school business university maryland 3450 van munching hall college park md 20742 301 405 2175 vshankar rhsmith umd edu barry l bayus kenan flagler north carolina cb 3490 chapel hill nc 27599 919 962 3210 barry_bayus unc revised january 2002 we especially thank npd group for providing data used in research also seminar participants at cornell ucla hong kong science technology as well anonymous reviewers their comments suggestions usual disclaimer applies abstract building on resource based view firm advance idea that a s customer can be strategic asset suggest are function size ie installed base strength marginal impact unit increase demand empirically study these 16 bit which dominant competitors were
