network externality

network externality

A situation in which the price somebody is willing to pay to gain access to a network is based solely on the number of other people who are currently using it. Fax machines and Internet email are prime examples. The more people who use the services, the more others are willing to use it. See network effect.
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Environmental influences are characterized by the following factors: network externality (interrelated organizations in the market environment that have adopted the innovation) and competitive pressures that the market exerts on the company.
Network externality and the winner takes all: the emerging power of the Internet
The ICT infrastructure also generates spillover and network externality effects among firms and various other economic units within and across countries, leading to enhanced economic growth and development.
Flow was measured through uni-dimensional measure while network externality was measured through two sub-dimensions viz.
Essentially, the user's decision to accept a special type of system/technology may be influenced by other users, and such effects from user network can be classified into social influence and network externality (Pontiggia & Virili, 2010).
Jaffe (1996) expresses that this positive network externality might occur even in the absence of knowledge spillovers between firms (while noting that it is likely that knowledge spillovers were also occurring at the same time).
Licensing Exclusivity, Transfer Costs, Monopoly Rent, Tacit Knowledge, Intellectual Property, Power Distance, Network Externality
Such cross-group network externality represents an instance of indirect network externalities (Katz & Shapiro, 1985).
In this paper, it is argued that, if we take the degree of specialization as endogenous, the provision of infrastructure that decreases transaction costs may produce some indirect network externality by enhancing the network of social division of labour.
Peering benefits come mainly from the network externality.
Perhaps such an explanation did not fit the two-sided network externality mold or violated the admonition against applying lessons from other sectors to the card business.
The more parties use a standardized term over time, the more certainty the term achieves--giving rise to a network externality effect.

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