In this paper we show that, in a framework in which there are two competing systems (for example, GSM cellular and trunk radio telecommunications networks) and consumers value more highly the good available in the system in which production costs are higher, the usual result that separate ownership increases welfare may be reversed. In fact, when the difference in costs from the least preferred system to its competitor system is relatively large, joint ownership leads to a higher level of welfare than separate ownership.
|Number of pages||18|
|Journal||Information Economics and Policy|
|Publication status||Published - Mar 1997|
- Joint ownership
- Technology adoption