Showing 1 - 10 of 46
Abstract I model dynamic product design along price and non-price dimensions by a firm in a market with positive network externalities between consumers. In the case of a usage fee, I provide conditions under which the steady state (SS) is unique and show that the introductory price is negative...
Persistent link: https://www.econbiz.de/10010934839
I develop a framework to explain why identity divides some communities and not others. An identity group is defined as a group of individuals with the same `culture'. A community is divided when different identities are socially segregated; a community is integrated when there is no social...
Persistent link: https://www.econbiz.de/10008672211
This paper proposes a revealed preference test of network formation models. Specifically, I consider network formation models where agents are (1) strategic, (2) externalities are confined to within an agent’s k-neighborhood, where k can be varied. I show that this model can be tested...
Persistent link: https://www.econbiz.de/10011141094
This paper studies a spatial model of electronic business network formation where firms build links based on a cost-benefit analysis. Benefits result from directly and indirectly connected firms in terms of knowledge flows, which are heterogeneous: a "key-player" (e.g. a firm providing an...
Persistent link: https://www.econbiz.de/10005585453
To study how economic fundamentals affect the formation of social networks, a model is needed that (i) has agents … relationships in a second stage of “meeting friends of friends”. The model predicts random graphs with tunable degree distributions … and clustering, and characterizes how those statistics depend on the economic fundamentals. When the value of friends-of-friends …
Persistent link: https://www.econbiz.de/10008673516
recommendation network position by using a variant of Google’s PageRank measure of centrality. We then associate the average level of … for assessing the influence of networks on demand and revenue patterns in electronic commerce, and provides new empirical …
Persistent link: https://www.econbiz.de/10005040808
We develop a model of dynamic platform formation under positive platform externalities. Users can switch between an incumbent and entrant platforms, switching opportunities arise stochastically and users can choose whether to accept or reject an opportunity to switch. For homogeneous users, we...
Persistent link: https://www.econbiz.de/10011141095
Understanding the process of software adoption is of paramount importance to software start-ups. We study a monopolistic seller’s optimal consumer network structure formation (seeding, segmentation, sequencing, and pricing strategies) under network effects. We demonstrate the importance of...
Persistent link: https://www.econbiz.de/10010905452
One of the most salient issues faced by platforms like newspapers and credit card issuers is that users are heterogeneous in the value they bring to other users or to the platform. We develop a model with multi-dimensional heterogeneity where a monopoly platform chooses (price or non-price)...
Persistent link: https://www.econbiz.de/10010905462
This paper proposes approximate variational inference methods for estimation of a strategic model of social interactions. Players interact in an exogenous network and sequentially choose a binary action. The utility of an action is a function of the choices of neighbors in the network. I prove...
Persistent link: https://www.econbiz.de/10010905473