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 …

networks one site makes high investments in content and other sites link to it. Interestingly, competitive dynamics often … preclude the formation of link networks, even in settings where they would improve everyone's profits. Furthermore, such … networks improve economic efficiency only when all members have similar abilities to produce content; otherwise the less …

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 …

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 …