Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
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Strategic Alliance and Profit Sharing in the Internet Market with Network Effects

인터넷기업 간 전략적 제휴와 이윤배분: 네트워크 효과를 중심으로

  • 오정훈 (고려대학교 국제대학원)
  • Published : 2006.09.30
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Abstract

In this paper, we develop three stage non-cooperative game models to analyze the alliance strategies of companies in internet markets where network effects are present. Regardless of its market share, an internet company's strategic alliance appears to be a superior strategy. The analysis also identifies profit sharing structures in the internet market where a smaller and unknown company is enforced to split its own profits with a larger and well-known company. It is shown that the amount of profit sharing grows as the size of network effects becomes larger.

Keywords

References

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