scholarly journals Using Experiments to Illustrate the Role of Network Externalities in Technology Adoption and Industry Evolution

2012 ◽  
Vol 6 (1) ◽  
Author(s):  
W. Parker Wheatley
Keyword(s):  
Technology Adoption ◽  
Network Effects ◽  
Network Externalities ◽  
Critical Mass ◽  
Industry Evolution ◽  
Government Action ◽  
Starting Point ◽  
Welfare Implications ◽  
Lock In

Abstract This experiment helps students to understand the importance of network externalities in technology adoption and the evolution of industries. Students observe the roles of lock-in and critical mass in technology adoption, understand how pricing affects adoption, and see welfare implications of network externalities. Given examples of network effects in firm and government action (e.g., the advanced television systems committee, antitrust litigation for the credit/debit card industry, and private strategy in newer DVD technologies (HD DVD vs. Blue-Ray)), this experiment fits courses that wish to illustrate these ideas and provides a starting point for a more detailed study of network externalities

Standards for ICT

2012 ◽  
Vol 10 (1) ◽  
pp. 34-47 ◽  
Author(s):  
Tineke M. Egyedi ◽  
Sachiko Muto
Keyword(s):  
Mobile Phone ◽  
Side Effect ◽  
Negative Impact ◽  
Critical Mass ◽  
It Industry ◽  
Starting Point ◽  
Compatibility Standards ◽  
Lock In ◽  
Complementary Strategy ◽  
The Eu

This paper takes the recent process towards standardizing the mobile phone charger in the EU as a starting point to consider the role that compatibility standards might play in mitigating the negative impact of ICT on the environment. Building on insights gained from the economics of standards literature, the authors explore how the inherent effects of compatibility standards – such as reducing variety, avoiding lock-in, and building critical mass – can have positive implications for the environment. While there is growing interest in how performance measurement standards initiatives with an explicit environmental purpose can contribute to sustainability, the authors argue that current standardization literature and policy have overlooked this important (side) effect of compatibility standards. Having first illustrated how excessive diversity and incompatibilities in ICT generate e-waste, discourage re-use and make recycling economically unviable, this paper develops an economic-environmental framework for analyzing the sustainability effects of compatibility standards and applies it to the case of mobile phone chargers. The authors conclude that compatibility standards are a form of ecodesign at sector level and should be recognized as a relevant complementary strategy towards greening the IT industry.

scholarly journals Does Quality Win? Competing Against an Entrenched Market-Leader in High-Tech Markets

2010 ◽  
Vol 2 (2) ◽  
pp. 8-15
Author(s):  
Gerard J. Tellis ◽  
Eden Yin ◽  
Rakesh Niraj
Keyword(s):  
Network Effects ◽  
Critical Mass ◽  
High Tech ◽  
Wide Spread ◽  
Market Place ◽  
Market Shares ◽  
Market Dominance ◽  
Market Leader ◽  
Industry Leader ◽  
Lock In

Abstract In recent years, with some early entrants to a market commanding huge market shares, critics have wondered whether the best quality products win in the market place. Early entrants can gain a position of wide-spread acceptance among users. The fact that a critical mass already uses the product might prompt new consumers to snowball onto this early choice leading to consumer lock-in. Many economists fear that such “network effects” may enable inferior products to defend their entrenched positions even against higher quality alternatives. This article tests the validity of this premise in 19 high-tech markets including hardware, software, and services. Results indicate that contrary to the above fear, healthy market evolution occurs in most cases without regulatory intervention. Better quality entrants gain market dominance within three to five years of entry. The findings also show that it makes sense to invest in developing high quality products even if the market seems dominated by an entrenched industry leader and that network effects even increase market efficiency in some cases

scholarly journals Failure to Launch: Critical Mass in Platform Businesses

2010 ◽  
Vol 9 (4) ◽  
Author(s):  
David S. Evans ◽  
Richard Schmalensee
Keyword(s):  
General Model ◽  
Network Effects ◽  
Network Externalities ◽  
Critical Mass ◽  
Customer Behavior ◽  
The Internet ◽  
Adjustment Processes ◽  
Low Costs

Platform businesses add value by facilitating interactions between customers who are attracted in part by network externalities. Two-sided platform businesses with low costs of reversing participation status have become more important with the rise of the Internet. This essay is concerned with new businesses of this sort and the initial critical mass hurdle that they generally seem to face. In a very general model, we show how this hurdle depends on the nature of network effects, the dynamics of customer behavior, and the distribution of customer tastes. Weak, plausible assumptions about adjustment processes imply that platforms must get a sufficient number of members of both sides on board to launch successfully.

INTERPRETATION OF SINO-RUSSIAN CULTURE AND HUMANITIES COOPERATION IN THE NEW ERA

2020 ◽  
Vol 10 (3) ◽  
pp. 186-193
Author(s):  
REN YANYAN ◽  
Keyword(s):  
Current Status ◽  
Human Relations ◽  
New Era ◽  
Russian Culture ◽  
The People ◽  
Starting Point ◽  
Cooperative Partnership ◽  
Belt And Road ◽  
The Belt And Road

The friendship between nations lies in the mutual affinity of the people, and the people’s affinity lies in the communion of hearts. The cultural and humanities cooperation between China and Russia has a long history. In recent years, under the role of the“Belt and Road” initiative, the SCO, and the Sino-Russian Humanities Cooperation Committee, Sino-Russian culture and humanities cooperation has continued to deepen. Entering a new era, taking the opportunity to promote Sino-Russian relations into a “new era China-Russia comprehensive strategic cooperative partnership”, the development of human relations between the two countries has entered a new historical starting point, while also facing a series of problems and challenges. This article is based on the current status of Sino-Russian human relations in the new era, interprets the characteristics of Sino-Russian human relations in the new era, analyzes the problems and challenges of Sino-Russian human relations in the new era, and tries to propose solutions and solutions with a view to further developing Sino-Russian cultural and humanities relations in the new era. It is a useful reference, and provides a reference for future related research, and ultimately helps the Sino-Russian cultural and humanities relations in the new era to be stable and far-reaching.

La conexión entre política de cohesión y gobernanza económica en la UE: Eficiencia del nuevo marco para abordar las consecuencias de la crisis

2015 ◽  
Vol 5 (3) ◽  
pp. 44-62
Author(s):  
Laura Gómez Urquijo
Keyword(s):  
Social Protection ◽  
Economic Governance ◽  
The European Union ◽  
Investment Funds ◽  
Current Economic Crisis ◽  
Starting Point ◽  
New Economic Governance ◽  
Social Protection Systems ◽  
New Instruments

The objective of this article is to contribute to the discussion on the validity of new instruments to enhance cohesion in the European Union (EU). First, we question to which extent cohesion policy is submitted to the new economic governance. Second, we discuss this subordination affects the fulfillment of cohesion aims. This question is especially relevant due to the increase of inequalities in the current economic crisis and the great diversity among State Members (including social protection systems and expenses). Thus, our starting point is the new economic governance framework and its impact on the fulfillment of cohesion objectives. Statistical data are considered with this aim. Next, we will assess the role of European Structural and Investment Funds to eventually compensate public expense cuts, as well as its subordination to the macroeconomic government. This aspect will be contrasted through the study of Country Specific Recommendations given by the European Semester. Spanish El objetivo de este artículo es contribuir a la discusión sobre la validez de los nuevos instrumentos para fomentar la cohesión en la Unión Europea. Nos preguntamos en qué modo queda sometida la política de cohesión a la nueva gobernanza económica y cómo afecta a la efectividad para cubrir susfines. Esta cuestión es particularmente relevante ante el incremento de las desigualdades suscitado en la crisis económica actual. Por ello, nuestro punto de partida es el nuevo marco de gobernanza económica y su impacto en el cumplimiento de los objetivos de cohesión, considerando para ello datos estadísticos. A continuación, valoraremos, el papel de los Fondos Estructurales y de Inversión Europeos como posibles compensadores de la reducción del gasto público así como su subordinación al gobierno macroeconómico. Esta cuestión será contrastada también a través del examen de las Recomendaciones Específicas por país dadas por el Semestre Europeo. French Le but de cet article est de contribuer à la discussion sur la validité de nouveaux instruments pour promouvoir la cohésion dans l'UE. Nous avons considéré, d'une part, en quoi la politique de cohésion est soumise à la nouvelle gouvernance économique et, d'autre part, la façon dont elle utilise l'efficacité pour répondre à ses fins.Cette question est particulièrement pertinente étant donnée l'augmentation de l'inégalité soulevée par la crise économique actuelle, dans un contexte de grande diversité d'États membres, notamment en ce qui concerne les systèmes de protection sociale et les dépenses publiques. Par conséquent, notre point de départ s'inscrit dans le nouveau cadre de gouvernance économique et son impact sur la mise en œuvre des objectifs de cohésion, à partir de la prise en compte de données statistiques. Pour ce faire, nous évaluons le rôle des Fonds Structurels Européens, leur capacité de compenser la réduction des dépenses publiques et leur subordination au gouvernement macroéconomique. Ce e question sera également abordée par l'examen des recommandations spécifiques par pays fournies par le Semestre Européen.

LEAD Farmer Based F2F Extension Mode l: Role of Krishi Vigyan Kendras and Technology Adoption Determinants for Enhancing Model’s Effectiveness

2019 ◽  
Vol 6 (04) ◽  
Author(s):  
M S MEENA ◽  
R B KALE ◽  
S K SINGH ◽  
A K SINGH
Keyword(s):  
Technology Adoption ◽  
Significant Role ◽  
Agricultural Production ◽  
Government Support ◽  
Front Line ◽  
Farm Families ◽  
Agricultural Technologies ◽  
Extension System ◽  
Index Value

A study was undertaken in collaboration with eight Krishi Vigyan Kendras (KVKs) and five Learning and Experience based Advisor (LEAD) farmers were selected by each KVK, employing socio-metric technique. Hence, data were solicited from 40 LEAD farmers from eight districts who were trained by KVKs. Role of KVKs were determined based on their Index Value (IV). Study reveals that KVKs played an important role in skill development of LEAD farmers through organisation of need based and skill-oriented trainings (IV=62) followed by front-line demonstrations on location specific agricultural technologies at farmers’ fields (IV=59.42), and developing linkages between LEAD and fellow farmers (IV=58.33). Key determinants accountable for enhancing effectiveness of this model were enhanced technology adoption (IV=60.13) followed by enhanced agricultural production (IV=57.48) and productivity (IV=57.10). Study reveals that one LEAD farmer adopted 5 agricultural technologies from KVKs. Further, fellow farmers adopted 2 agricultural technologies from LEAD farmers. Hence, it was concluded that this approach may play a significant role in complementing Indian public extension system through reducing cost and coverage of more farm families. This model needs community as well as government support for sustainability and its scalability.

Working Time under Alternative Pay Contracts in the Ride-Sharing Industry

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Filippo Belloc
Keyword(s):  
Network Effects ◽  
Network Externalities ◽  
Profit Sharing ◽  
Static Model ◽  
Peer To Peer ◽  
Working Time ◽  
Intensive Margin ◽  
Hours Worked ◽  
Ride Sharing ◽  
Transportation Sector

AbstractWe study hours worked by drivers in the peer-to-peer transportation sector with cross-side network effects. Medallion lease (regulated market), commission-based (Uber-like pay) and profit-sharing (“pure” taxi coop) compensation schemes are compared. Our static model shows that network externalities matter, depending on the number of active drivers. When the number of drivers is limited, in the presence of positive network effects, a regulated system always induces more hours worked, while the commission fee influences the comparative incentives towards working time of Uber-like pay versus profit-sharing. When the number of drivers is infinite (or close to it), the influence of network externalities on optimal working time vanishes. Our model helps identifying which is the pay scheme that best remunerates longer working times and offers insights to regulators seeking to improve the intensive margin of coverage by taxi services.

scholarly journals Global dynamics of international migration systems across South–South, North–North, and North–South flows, 1990–2015

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Diego F. Leal ◽  
Nicolas L. Harder
Keyword(s):  
International Migration ◽  
Network Effects ◽  
Global Dynamics ◽  
Core Set ◽  
Migration Dynamics ◽  
Key Drivers ◽  
Migration Flows ◽  
And Migration ◽  
Migration Systems

AbstractEvidence from 184 countries over the span of 25 years is gathered and analyzed to understand North–North, South–South, and North–South international migration flows. Conceptually, the analysis borrows from network theory and Migration Systems Theory (MST) to develop a model to characterize the structure and evolution of international migration flows. Methodologically, the Stochastic Actor-oriented Model of network dynamics is used to jointly model the three types of flows under analysis. Results show that endogenous network effects at the monadic, dyadic, and triadic levels of analysis are relevant to understand the emergence and evolution of migration flows. The findings also show that a core set of non-network covariates, suggested by MST as key drivers of migration flows, does not always explain migration dynamics in the systems under analysis in a consistent fashion; thus, suggesting the existence of important levels of heterogeneity inherent to these three types of flows. Finally, evidence related to the role of political instability and countries’ care deficits is also discussed as part of the analysis. Overall, the results highlight the importance of analyzing flows across the globe beyond typically studied migratory corridors (e.g., North–South flows) or regions (e.g., Europe).

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