network externalities


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network externalities

the increase in the value of a product as more people use it. For example, as the number of people with telephones increases, the value to any individual of owning a telephone is enhanced, since he or she has more people with whom to communicate.
References in periodicals archive ?
Not only could large technology companies increase market concentration by exploiting their network externalities, they could also create new risks.
Instrumental to the success of this new literature was the discovery of a whole new class of market failures caused by increasing returns and network externalities. The theoretical relevance of network effects for industrial structure, monopoly power, and economic efficiency first explored by Michael Katz and Carl Shapiro (1985, 1986) provided the foundations for the theory of increasing returns and lock-in later developed by W.
One can understand why Initiative Q's marketing strategy has caused it to be dismissed as a (https://davidgerard.co.uk/blockchain/2018/06/24/initiative-q-a-non-crypto-private-currency-marketed-by-pyramid-scheme/) "pyramid scheme."  But like any payments system, it faces "(https://www.investopedia.com/terms/n/network-effect.asp) network externalities ".
How network externalities can exacerbate intergroup inequality.
"Simulating the Evolution of Market Shares: The Effects of Customer Learning and Local Network Externalities," Computational Economics 43(1): 53-70.
The purpose of this study is to extend the economic theories on technology adoption when network externalities are present, specifically for the case of information technology.
Network externalities / Network effects occur when an increase in the number of users of some good raises benefits for all users.
Higher take-up rate means more "internalization" of externalities/spill-overs under the argument that network externalities are exhausted if everybody is connected.
It will also consider future growth by improving access to markets, stimulating trade, investment and boosting productivity and efficiency through associated network externalities and agglomeration effects.
Therefore, in our model, the variable "environmental influences" comprises the variables "competitive pressures" and "network externalities".
He details basic trends in the banking industry driven by technological or regulatory changes and the reasons for the existence of banks and their roles in the economy, then provides analysis of competition in the banking sector based on the tools of industrial organization, looking at pricing, product differentiation, frictions, network externalities and two-sided markets, market structure, mergers, and deregulation.
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