Digital business models are becoming more common and are paving the way to the future of business; their design as networks, platforms, or ecosystems is inherently digital. This type of business model depends on network effects-when an increase of users of a network, platform, or ecosystem ultimately benefits new users, established users, and the whole network, platform, or ecosystem. This textbook explores what network effects are, how they work, how to create them, and the specific governance choices necessary to form them. Drawing on quantitative and qualitative elements, economics and managerial studies, and a large number of examples, this text seeks to analyze and configure networks, platforms, and ecosystems and emphasize the pivotal role of data in the network economy. This book will provide both students and professionals with valuable knowledge and practical insights for understanding the world of digital platforms. Chapter 1 offers an overview of networks, digital platforms, and ecosystems and how they differ from each other. A network''s control function includes managing four connection types-creation, curation, customization, and consumption. The goal is to turn potential connections into specific interactions and exchange relationships. Differences between business models based on pipelines and networks are described. The direct network effect occurs when the more people that use the network, the more benefits the person can gain from the network; the indirect network effect occurs when the more significant a network''s target group is, the more benefits the network can create for other target groups. Digital networks are causing shifts in the economy, affecting markets, competitive advantage, and value creation; these changes have resulted in controversies related to the spread of network business models.