Study on the Mechanism of Indirect Network Externality
基于硬件/软件范式的间接网络外部效应研究

Based on the two-stage budgeting procedure this paper analyzes the mechanism of indirect network externality. The results show that hardware/software norm with indirect network externality can also be delineated by network benefit function. Furthermore, network benefit is decided by the market share of hardware, namely the installed base in addition to the fixed cost and variable cost of software.