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> The Economics of Networks and Digital Platforms, Chapter 2: "Network Effects

商品編號: BEP779
出版日期: 2025/02/25
作者姓名:
Schneider, Henrique
商品類別: Other
商品規格: 39p

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商品敘述:

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 2 discusses network effects and the various types of these effects, always aware of the difference between simple effects of scale and full-blown network effects. Network effects can be positive or negative as well as direct or indirect. Many online platforms and ecosystems have a governance system to ensure positive network effects; governance must be regularly adapted by platform sponsors because of the dynamic nature of network effects. This chapter uses economic theory and benefit functions to model these effects and analyze how they benefit both platform sponsors and users. Equilibrium theory is used to demonstrate that networks must exceed a critical mass of people to survive, and when they do, they achieve maximum possible expansion. Specific challenges with network effects, the chicken or egg problem, and market polarization are all explored.


涵蓋領域:

Customer experience;Digital transformation;Social network analysis;Strategy;Web-based technologies;Strategy management


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