oligopolistic market for newly introduced durable products with network externalities. The
model is then applied to empirically analyze the de facto standardization of the VHS format
in the US home VCR market during 1981–1988. We find:(i) the network advantage of VHS
explains at least 70.3% to 86.8% of (the logarithm of) relative sales of VHS to Betamax in
each year;(ii) an increase in the network advantage of VHS was an engine of tipping toward …