For each of the following products, could consumer lock-in or network externalities (or both) create a barrier to entry? Explain why or why not.
c. Video games
Consumer lock-in occurs when consumers have invested in one particular brand and changing to another will result in a loss of their investment. This occurs with such things as video game consoles. Once having chosen a console (XBox or Nintendo, for example), the consumer is tied to it because it is ...
This solution discusses how markets in with consumer lock-in and network externalities affect entry.