, Competition, and Compatibility.
This article is divided as follows: the subsequent section will explore the literature related to the theme and the main discussed constructs: UTAUT2 and network externalities
. The third section will describe the method used to address the research question and the hypothesis.
But blanket use of the network externalities
argument for market failure is not entirely convincing simply because networks currently lack interoperability.
" occurs when the demand exerted by a person or organization can be influenced by other consumers who have already purchased the product (PINDYCK; RUBINFELD, 2005).
A distinguishing feature of networks is that they generate positive feedback effects (network externalities
) in which users receive direct uncompensated benefits that increase with the network membership.
Each of a thriving service economy's major components -- ICT, finance, insurance, transportation and real estate -- needs the others to prosper, and cities are what bring them all together -- a phenomenon of network externalities
De Nicolo, Favara and Ratnovski (2012) identify fire sales externalities, strategic complementarities, and network externalities
as the externalities at the root of liquidity crises emphasised by the literature.
The corridor promotes growth by removing infrastructure bottlenecks, improving access to markets, stimulating trade and investment and boosting productivity and efficiency through associated network externalities
and agglomeration effects.
(27) In this context, it is now undisputed that there must be indirect network externalities
(or cross-platform externalities) to have a two-sided market: users' participation on one side increases the participation of users on the other side (and vice versa).
Flow and network externalities
are added to the standard theory of planned behaviour to understand the intentions to use Whatsapp.