This paper introduces a novel mechanism by emphasizing benefits for firms through participation in buyer networks among firms that source the same locally produced inputs. In a first step, we utilize register-based data from Denmark to generate a firm-specific buyer network variable which relies...

This paper introduces modern readers to 'banking theory', that is, to the understanding of the banking system that was held by academics and practitioners in the early years of the twentieth century. This theory contrasts with the theoretic framework that views banks as intermediaries that...

This paper introduces modern readers to ‘banking theory’, that is, to the understanding of the banking system that was held by academics and practitioners in the early years of the twentieth century. This theory contrasts with the theoretic framework that views banks as intermediaries that...

This paper introduces a novel mechanism by emphasizing benefits for firms through participation in buyer networks among firms that source the same locally produced inputs. In a first step, we utilize register-based data from Denmark to generate a firm-specific buyer network variable which relies...

We design the profit-maximizing mechanism to sell an excludable and nonrival good with network effects. Buyers have heterogeneous private values that depend on how many others also consume the good. In optimum, an endogenous number of the highest types shares consumption, and we provide an...

Purpose The proliferation of industry platforms has disrupted several industries. Firms adopting a platform business model have experienced a substantial expansion in size and scale, positioning themselves as the foremost valuable entities in market capitalization. Over the past two decades,...

We investigate the welfare effects of third-degree price discrimination by a two-sided platform that enables interaction between buyers and sellers. Sellers are heterogenous with respect to their per-interaction benefit, and, under price discrimination, the platform can condition its fee on...

In symmetric binary-choice coordination games, the global-game selection (GGS) has been proven to predict a high proportion of observed choices correctly. In these games, the GGS is identical to the best response to Laplacian beliefs about the fraction of players choosing either action. This...

Firms increasingly establish digital industrial platforms to cope with the adaption of the industrial internet of things (IIoT) paradigm. The tremendous success of digital platforms in many platform-mediated industries can be traced back to the ignition of network externalities. However, the...

In symmetric binary-choice coordination games, the global-game selection (GGS) has been proven to predict a high proportion of observed choices correctly. In these games, the GGS is identical to the best response to Laplacian beliefs about the fraction of players choosing either action. This...

The traditional pipeline-based approach to operating business is currently challenged by the platform-based approach. The research on digital platforms and platform business is well established and includes multiple different design frameworks for building platform business but they seem to lack...

We investigate the welfare effects of third-degree price discrimination by a two-sided platform that enables interaction between buyers and sellers. Sellers are heterogenous with respect to their per-interaction benefit, and, under price discrimination, the platform can condition its fee on...

Purpose: This paper addresses a gap in research literature in the fields of blockchain technology (BC), supply chain network dynamics (SC) and network effect phenomena (NE). Extant BC and SC literature describes the potential benefits to be reaped through the adoption of BC technology. While BC...

Purpose: This paper addresses a gap in research literature in the fields of blockchain technology (BC), supply chain network dynamics (SC) and network effect phenomena (NE). Extant BC and SC literature describes the potential benefits to be reaped through the adoption of BC technology. While BC...

Compatibility of network products is an important issue in markets for communication technology as well as hard- and software products. Empirical findings suggest that firms competing in these markets typically choose intermediate degrees of product compatibility. We present a strategic...

This policy report studies the effects of a sudden stop of natural gas imports from Russia on the German economy. The analysis focuses on the supply-side effects that arise when a gas shortage affects production in the gas-intensive manufacturing sectors, with a corresponding production...

The paper focuses on platform business models as ubiquitous features of the digital economy whose economic importance is continuously increasing. Considering their varying definitions and diverse typology, the aim of this paper is to coin a unified definition and identify the main attributes of...

Context What do Uber Ride, Airbnb Lodging, and eBay Marketplace have in common? All three platform business models generate extensive network effects (NfX) between providers and consumers. Network effects are the magic force that turns a single taxi service agency into a provider for an entire...

This policy report studies the effects of a sudden stop of natural gas imports from Russia on the German economy. The analysis focuses on the supply-side effects that arise when a gas shortage affects production in the gas-intensive manufacturing sectors, with a corresponding production...