Internet network externalities

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Title: NETWORK EXTERNALITIES AND THE INTERNET Running title: Internet Network Externalities

A driving force behind the emergence of the “new” or information economy is the growth of Internet network capacity. A fundamental problem in mapping this dynamic is the lack of an acceptable theoretical framework through which to direct empirical investigations. Most of the models in the literature on network externalities have been developed in a static framework, with externalities viewed as...

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Standardization and Network Externalities

The standardization issue in the ICT industry is mainly compatibility in the presence of network externalities. The compatibility in Economics usually means interoperability between competing products. For instance, the VHS VCRs and the Betamax VCRs are incompatible in the sense that tapes recorded in one format (e.g., VHS) could not be played in the other format (e.g., Betamax). Hence, in the ...

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Network Externalities, Competition, and Compatibility

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RDin Markets with Network Externalities

We study how network externalities affect research and development (Rinvestments by a non−cooperative duopoly that offers compatible products. We find that multiple RDequilibria may arise when network externalities are non linear in the number of consumers. The lowest RDequilibrium corresponds to the case where network externalities are absent. However, even in the presence of network externali...

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Quantitative Analysis of Network Externalities

In this paper, we extend a standard nested logit model, developing an empirically applicable dynamic structural model of consumers’ choices and producers’ pricing in an oligopolistic market for newly introduced durable products with network externalities. The model is then applied to quantitatively analyze the extent to which network externalities contributed to the de facto standardization of ...

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ژورنال

عنوان ژورنال: International Journal of Management and Network Economics

سال: 2008

ISSN: 1754-2316,1754-2324

DOI: 10.1504/ijmne.2008.018678