Economists began developing the theory of network effects
in the 1970s.
technologies transform the CIOs work from making tactical technology decisions into building strategic platforms.
result when the value of a good or service depends on the total number of those using it.
From these findings, this study highlights the need to go beyond an examination of the network effect
on economic measures of the organizations in alliances.
could not stimulate effectively the cross-sided network effect
based growth of the platform.
A sufficiently insulated trading network will generate its own network effect
, much like the dialect of an isolated community.
Like the other information technology (IT) markets that comprise the Internet ecosystem, broadband communications services are characterized by rapid innovation, declining costs, product differentiation, competitive price discrimination, network effects
, and "multisidedness.
Again, we are focused on the overall network effect
and not specific targets, be they positive actors whom we should reinforce or insurgents who should be removed from the network.
The authors noted that in the most recent survey, 39% of developers said that the network effect
of all of Google's assets like search and Android "are more important to them than Facebook's social graph.
On the other hand, the firm will be able to appropriate some of the surplus generated by the network effect
itself, which is present for any standard and thus does not affect the social incentive to change standards.
The relationship is complicated by its theoretical ambiguity: religion can both enhance and suppress economic activity in general, and its potential network effect
can both create and divert trade.
Given that any standard conveys a network effect
on the demand side, the industry can choose any standard or not choose among them (as happened for quite a while in the late 19 80s with LPs and CDs coexisting in the music market).