Control strategy to technology standard of f irm based on network externality
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    Abstract:

    The paper analyzes how the dominant producer , to control its technology standard which is mainstream in the market which the network externality exists. The results show that the intensity of network externality and scale of the installed base have great influence on the decision of the dominant producer when the dominant producer faces the threat of the cooperative behavior of the fringes. Only if network externality is small and the scale of installed base of the dominant producer is large , the dominant producer should monopolize its standard. And when the net2 work externality is large or the scale of installed base of the dominant producer is small , the dominant producer should fully or targetedly open its standard. When the government orders the dominant producer shouldn’t open tar2 getedly its standard , the social welfare might be impaired.

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