Network Industries
Network industries differ from regular, competitive markets in that inequality exists naturally in the market. Economides (2004), states that in the case of a network industry with network externalities, the introduction of competition does not significantly alter the structure of the market. The equilibrium of the market is not a competitive one, and prevents perfect competition from developing. The conditions of free entry imposed on network industries do not alter what Economides calls the “incompatibility equilibrium” or the extreme inequality […]
