This paper studies a spatial model of electronic business network formation where firms build links based on a cost … "key-player" (e.g. a firm providing an exchange platform in a business-to-business network) provides a higher level of … values of link formation, stable and efficient network structures comprise only a subset of the total set of firms, excluding …

To study how economic fundamentals affect the formation of social networks, a model is needed that (i) has agents … to network formation in order to develop such a model. Agents spend costly resources to socialize. Their effort levels …-of-friends is low, equilibrium networks can be either sparse or thick. But as soon as this value crosses a key threshold, the sparse …

network externalities between consumers. In the case of a usage fee, I provide conditions under which the steady state (SS) is … consumers whose price-elasticity of demand is large relative to their valuation for network externalities. Finally, we show how … the network's value. …

Amazon.com. Viewing each product as having a unique position in a hyperlinked network of recommendations between product that … recommendation network position by using a variant of Google’s PageRank measure of centrality. We then associate the average level of … network influence on each category with the inequality in the distribution of its demand and revenue, quantifying this …

This paper proposes a revealed preference test of network formation models. Specifically, I consider network formation … varied. I show that this model can be tested using observation of a single network. I then derive necessary and sufficient … condition under which the observed network is consistent with our strategic models of network formation. This non …

monopolistic seller’s optimal consumer network structure formation (seeding, segmentation, sequencing, and pricing strategies …) under network effects. We demonstrate the importance of adoption sequencing as well as controllability over the seeding … the seeding process, with both multiplicative and additive forms of network effects, we show that all segments contain …

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 that the interaction process can be represented as a potential …