Development of a technological competition model in the presence of network effects from the modified law of metcalfe

Abstract

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The objective of this paper is to propose a new model of competence in presence of network effects. We will introduce some modifications in the Lotka-Volterra model, in order to solve its deficiencies. The main improvement is to introduce a modification of Metcalfe s Law, what allow us to reflect the effect of congestion externalities. The model s validation, developed by numerical simulation, confirms that its behaviour is quite similar to that observed in real markets.