scholarly journals Indirect Network Effects and Adoption Externalities

2008 ◽  
Vol 7 (3) ◽  
Author(s):  
Jeffrey Church ◽  
Neil Gandal ◽  
David Krause
Keyword(s):  
Network Effects ◽  
Returns To Scale ◽  
Social Benefit ◽  
Software Systems ◽  
Free Entry ◽  
Private Benefit ◽  
Increasing Returns To Scale ◽  
Indirect Network Effects ◽  
The Social ◽  
Consumption Benefits

Can indirect network effects lead to adoption externalities? If so, when? We show that in markets where consumption benefits arise from hardware/software systems, adoption externalities will occur when there are (i) increasing returns to scale in the production of software, (ii) free entry in software, and (iii) consumers have a preference for software variety. The private benefit of the marginal hardware purchaser is less than the social benefit since the marginal hardware purchaser does not internalize the welfare improving response of the software industry, particularly the increase in software variety, on inframarginal purchasers when the market for hardware expands.

Network Effects

2010 ◽  
pp. 1007-1013
Author(s):  
Erik den Hartigh
Keyword(s):  
Network Effects ◽  
Returns To Scale ◽  
Increasing Returns ◽  
Increasing Returns To Scale ◽  
The Subject

From the 1980s, network effects attracted a lot of interest in economics and management sciences. This was mainly due to the work of Arthur (e.g., 1988, 1989, 1990). While the subject of increasing returns to scale in companies had a long tradition in economics, network effects (i.e., increasing returns in markets) had hardly been addressed.

scholarly journals Settlement scaling and increasing returns in an ancient society

2015 ◽  
Vol 1 (1) ◽  
pp. e1400066 ◽  
Author(s):  
Scott G. Ortman ◽  
Andrew H. F. Cabaniss ◽  
Jennie O. Sturm ◽  
Luís M. A. Bettencourt
Keyword(s):  
Population Size ◽  
Network Effects ◽  
Returns To Scale ◽  
Quantitative Relationship ◽  
Theoretical Work ◽  
Increasing Returns ◽  
Increasing Returns To Scale ◽  
Recent Theoretical Work ◽  
General Network ◽  
Parameter Values

A key property of modern cities is increasing returns to scale—the finding that many socioeconomic outputs increase more rapidly than their population size. Recent theoretical work proposes that this phenomenon is the result of general network effects typical of human social networks embedded in space and, thus, is not necessarily limited to modern settlements. We examine the extent to which increasing returns are apparent in archaeological settlement data from the pre-Hispanic Basin of Mexico. We review previous work on the quantitative relationship between population size and average settled area in this society and then present a general analysis of their patterns of monument construction and house sizes. Estimated scaling parameter values and residual statistics support the hypothesis that increasing returns to scale characterized various forms of socioeconomic production available in the archaeological record and are found to be consistent with key expectations from settlement scaling theory. As a consequence, these results provide evidence that the essential processes that lead to increasing returns in contemporary cities may have characterized human settlements throughout history, and demonstrate that increasing returns do not require modern forms of political or economic organization.

Comment on ‘Competition Tests with a Non-Structural Model: The Panzar–Rosse Method Applied to Germany’s Savings Banks’

2011 ◽  
Vol 12 (2) ◽  
pp. 239-241
Author(s):  
Manfred Neumann
Keyword(s):  
Public Interest ◽  
Structural Model ◽  
Monopolistic Competition ◽  
Returns To Scale ◽  
Increasing Returns ◽  
Free Entry ◽  
Recent Issue ◽  
Increasing Returns To Scale ◽  
The Public ◽  
Savings Banks

Abstract In a recent issue of this journal Gischer and Stiele (2009) applied the ‘Test for ‘‘Monopoly’’ Equilibrium’ advanced by Panzar and Rosse (1987) to German savings banks and came up with the claim that savings banks maximize profits under conditions of monopolistic competition in the meaning of Edward Chamberlin. Their proposition is not conclusive since it would require free entry and for savings banks to operate under increasing returns to scale. Available evidence, however, shows them being subject to constant or decreasing returns to scale. The empirical findings of Gischer and Stiele can more convincingly be explained by assuming savings banks abide by their legal goals to pursue the public interest.

scholarly journals Restrictions for different functional forms of the matching function

SERIEs ◽  
2019 ◽  
Vol 11 (1) ◽  
pp. 105-113
Author(s):  
Ausias Ribó ◽  
Montserrat Vilalta-Bufí
Keyword(s):  
Upper Bound ◽  
Returns To Scale ◽  
Matching Function ◽  
Free Entry ◽  
Filling Rate ◽  
Increasing Returns To Scale ◽  
Functional Forms ◽  
Search And Matching Model ◽  
Job Finding ◽  
Constant Returns To Scale

Abstract We provide bounds on the parameters of matching functions such that the job-finding rate and the vacancy-filling rate are below 1. We do that in the context of the canonical search and matching model with a Pissarides-type free-entry condition. We find that the restrictions for a Cobb–Douglas matching function with increasing returns to scale are rather restrictive, involving an upper bound to future expected profits and the number of job searchers. In contrast, for functional forms with constant returns to scale (Cobb–Douglas, CES) the restrictions involve only parameters or an upper bound to the future expected profits. The paper also investigates when a job-finding rate (vacancy filling rate) below one can restrict the vacancy filling rate (job-finding rate) to be below and strictly bounded away from one. We provide the bounds implied by these “interior equilibria.”

scholarly journals A Research on the Social Responsibility Efficiency of Chinese Listed Food Companies

2017 ◽  
Vol 21 (2) ◽  
pp. 83-90
Author(s):  
Weimei Zhang
Keyword(s):  
Social Responsibility ◽  
Index System ◽  
Returns To Scale ◽  
Listed Companies ◽  
Increasing Returns ◽  
Input Output ◽  
Increasing Returns To Scale ◽  
Dea Model ◽  
Output Index ◽  
The Social

Abstract On the basis of establishing an input-output index system of listed food companies’ social responsibility, this paper uses the DEA model to assess 22 Chinese listed food companies’ social responsibility efficiency between 2014 and 2016. Results show that the social responsibility efficiency of Chinese listed food companies is generally lower and the average of the 22 companies is only 0.665. The social responsibility management in 81.80% of listed food companies is in a relatively ineffective state. There is a big room for improvement. In addition, the social responsibility efficiencies of listed companies with different sizes are quite different. The social responsibility efficiency of large-sized listed food company is obviously higher than that of the small and medium-sized. The study also shows that the social responsibility efficiencies of most listed food companies are in the stage of increasing returns to scale and more input would be necessary in order to achieve higher efficiency.

Ian Livingstone (Ed.). Development Economics and Policy: Readings. London: George Allen & Unwin. 1981. x + 353 pp.Hardback £ 17.50 and Paper• back £ 7.95.

1981 ◽  
Vol 20 (1) ◽  
pp. 121-130
Author(s):  
Syed Nawab Haider Naqvi
Keyword(s):  
Development Economics ◽  
Social Benefit ◽  
Private Benefit ◽  
Publish Or Perish ◽  
The Social

The editor of a 'book of readings' has generally his back to the wall before the onslaught of prospective critics clamouring "why one more". True, the marginal net private benefit to the editor from such publications can always be shown to be positive, or at least strictly non-negative, by reference to the notorious publish-or-perish syndrome. However, the need for a convincing demonstration of the positively of the expected marginal net social benefit from such books drags the reluctant editor gladiator into the arena. In many cases the spectacle is a pathetic one: the editor endlessly and vainly differentiating his goods from those of others even if that involves a comparison of the 'bads', indulging in omniscient subjectivism: "this is what / consider to be the best collection" (never mind if it is the nth-best), or patronizing those who have been forced by time, circumstance or public apathy into anonymity: "such articles were not easily accessible." If all fails, and the editor also happens to be teaching a course in development economics, then even if the social profitability of such a collection falls far short of its private profitability, the situation can still be redeemed by the deus ex machina of the cause of pedagogy needing the helping hand of yet another book of readings.

scholarly journals Preparing Education Students for an International Future? Connecting Students’ Experience to Institutional Contexts

2021 ◽  
pp. 102831532199849
Author(s):  
Nafsika Alexiadou ◽  
Zoi Kefala ◽  
Linda Rönnberg
Keyword(s):  
Teaching Practice ◽  
Social Benefit ◽  
Social Dimensions ◽  
Intercultural Understanding ◽  
Social Relevance ◽  
Education Students ◽  
Documentary Analysis ◽  
The Social ◽  
Institutional Contexts ◽  
Internationalization At Home

This article focuses on “internationalization at home” (IaH) for education students in Swedish Universities and its significance for their professional formation and future practice. We draw on research in two large institutions and explore the perceptions and experiences of internationalization of home students in education. We find that while the “intercultural” understanding of students is well developed, the international and intercultural dimensions of experiencing IaH are limited, due to several institutional and learning environment contexts. This has consequences for the social dimensions of future teaching practice. In addition, the perception of the discipline as “national” is significant in shaping the outlook of students toward international questions and their own future personal and professional mobility. We contextualize these findings using documentary analysis and staff interviews, and argue that to achieve intercultural and international learning environments of quality, social relevance, and long-term social benefit, we need to rethink how internationalization perspectives are integrated in teacher education courses.

Comparison and Application of Metrics That Define the Components Modularity in Complex Products

2008 ◽  
Author(s):  
Qi D. Van Eikema Hommes
Keyword(s):  
Social Network ◽  
Centrality Measures ◽  
Software Systems ◽  
Network Centrality ◽  
Good Pair ◽  
Centrality Metrics ◽  
The Social ◽  
Social Network Centrality ◽  
Sample Test

As the content and variety of technology increases in automobiles, the complexity of the system increases as well. Decomposing systems into modules is one of the ways to manage and reduce system complexity. This paper surveys and compares a number of state-of-art components modularity metrics, using 8 sample test systems. The metrics include Whitney Index (WI), Change Cost (CC), Singular value Modularity Index (SMI), Visibility-Dependency (VD) plot, and social network centrality measures (degree, distance, bridging). The investigation reveals that WI and CC form a good pair of metrics that can be used to assess component modularity of a system. The social network centrality metrics are useful in identifying areas of architecture improvements for a system. These metrics were further applied to two actual vehicle embedded software systems. The first system is going through an architecture transformation. The metrics from the old system revealed the need for the improvements. The second system was recently architected, and the metrics values showed the quality of the architecture as well as areas for further improvements.

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