Subsidy Policies in Internet Competition:Implications for First-mover Advantages
Positive network externality enables the Internet enterprises to attach great importance not only to the network size but also to the speed of the network size to be reached.Basing on the analysis of the development and expansion course of several typical e-commerce sites as pioneers of market segments,this paper discusses the subsidy policies of how these companies entered the various Chinas e-commerce fields in advance,attracted and retained their users.Study shows that it is an indispensable means of competition for the Internet enterprises to adopt subsidy policies,which normally does not result in an enterprises financial distress.But,it will affect the growth of its profits,when subsidy policies are adopted improperly or employed without being innovated.At the same time,the degree of network externality is one of the factors affecting the outcome of subsidy policies.
Positive network externality First-mover advantage Subsidy policy
Yingzi Xiong Zhenyu Liu Aiyong Wang
School of Management Xiamen UniversityXiamen 361005,P.R.China Business School Shihezi University Wujiaqu 831300,P.R.China
国际会议
北京
英文
2008-10-12（万方平台首次上网日期，不代表论文的发表时间）