Cheap talk and bogus network externalities in the emerging technology market

摘要

To explore more efficient channel coordination mechanisms that jointly employ cheap talk and incentive contracts in the technology market. This paper focuses on the role of members of distribution channel and transmission of information regarding network externalities in a technology market. The members of the distribution channel in focus are the technology vendor and the technology retailer. Both of them engage in what is called 'cheap talk' (imperfect private information or voluntary disclosure). The present paper presents the relevance of cheap talk about market externalities of the technology diffusion and incentive contracts among members in such a scenario.