scholarly journals Merger Control and Online Platforms: the Relevance of Network Effects

2017 ◽  
Vol 1 (2) ◽  
pp. 69-100
Author(s):  
Antonio Robles Martín-Laborda
Keyword(s):  
Network Effects ◽  
The Internet ◽  
Entry Barriers ◽  
Digital Platforms ◽  
Online Platforms ◽  
Indirect Network Effects ◽  
Direct Network ◽  
The One ◽  
The Impact ◽  
Direct Networks

Digital platforms operate in multisided markets providing services through the internet to two or more distinct groups of users, between which there are indirect network effects. Direct networks effects are frequently present within each group. Therefore, online platforms usually present both direct network effects, between individual members of the same group, and indirect network effects, between members of distinct groups. Network effects may simultaneously reduce competition leading to a greater concentration and strengthening entry barriers, on the one hand, and put forward significant efficiencies on the other. This article examines some keys aspects related to the impact of network effects on the assessment of mergers in two-sided markets, taking account of the recent practice of the Commission.

Principles for sharing economy formation in the digital society

2020 ◽  
Vol 16 (5) ◽  
pp. 800-821
Author(s):  
E.V. Popov ◽  
K.A. Semyachkov
Keyword(s):  
Network Effects ◽  
Sharing Economy ◽  
Network Effect ◽  
Industrial Society ◽  
Economic Activities ◽  
Digital Platforms ◽  
Digital Society ◽  
Modern Economy ◽  
Characteristic Features ◽  
The Impact

Subject. The article addresses economic relations that are formed in various areas of economic application of digital platforms. The target of the research is the modern economy of digital platforms across different economic activities. Objectives. The aim is to systematize principles for share economy formation in the context of the digital society development. Methods. We employ general scientific methods of research. Results. The study shows that the development of digital platforms is one of the most important trends in the development of the modern economy. We classified certain characteristic features of modern digital platforms, analyzed principles for their creation. The paper emphasizes that the network effects achieved through the use of digital platforms are an important factor in the development of the share economy. The network effect describes the impact of the number of the platform users on the value created for each of them. The paper also considers differences in the organization of traditional economy companies and companies that are based on the digital platform model, reveals specifics of changes in socio-economic systems caused by the development of digital platforms, systematizes principles of the sharing economy formation in the context of the digital society development. Conclusions. The analyzed principles for sharing economy development on the basis of digital platforms can be applied to create models for the purpose of forecasting the transformation of economic activity in the post-industrial society.

Citizen Deliberation Online

2019 ◽  
pp. 689-712
Author(s):  
Patrícia Rossini ◽  
Jennifer Stromer-Galley
Keyword(s):  
Political Engagement ◽  
Future Research ◽  
The Internet ◽  
Digital Platforms ◽  
The Core ◽  
Political Conversation ◽  
Political Talk ◽  
Citizen Deliberation ◽  
The Impact

Political conversation is at the heart of democratic societies, and it is an important precursor of political engagement. As society has become intertwined with the communication infrastructure of the Internet, we need to understand its uses and the implications of those uses for democracy. This chapter provides an overview of the core topics of scholarly concern around online citizen deliberation, focusing on three key areas of research: the standards of quality of communication and the normative stance on citizen deliberation online; the impact and importance of digital platforms in structuring political talk; and the differences between formal and informal political talk spaces. After providing a critical review of these three major areas of research, we outline directions for future research on online citizen deliberation.

scholarly journals The Utilization of Digital Platforms for Marketing in the Nigerian Entertainment and Media (E&M) Industry: Prospects and Challenges

2018 ◽  
Vol 5 (1) ◽  
pp. 60
Author(s):  
Nelson Obinna Omenugha
Keyword(s):  
Power Supply ◽  
Global Perspective ◽  
The Internet ◽  
National Bureau ◽  
Network Infrastructure ◽  
Digital Platforms ◽  
The Government ◽  
Analogue To Digital ◽  
Economic Need ◽  
The Impact

The National Bureau of Statistics recently announced that the entertainment and media (E&M) industry in Nigeria recorded growth of 1.86% to 12.81%; contributing N54bn to the country’s GDP. The industry’s revenue is projected to reach an estimated $8.5bn in 2018, from $4bn in 2013, with internet as one of the key drivers (PwC report, 2016, p.14). This comes at a time when Nigeria’s economy has shrunk by 2.24% since 2015 and receded by 0.18% from the previous quarter. Therefore, this study unpacks the possibilities and challenges of the impact of e-marketing tools on the growth of the Nigerian E&M industry. E-marketing tools provide “a unique combination of powerful capabilities for marketers” (Parsons et al., 2015). E-marketing suitability for the E&M industry lies in its lower capital demand, and a convenient and online means of disseminating marketing messages across a heterogeneous population at an unlimited geographical space. E-marketing is a reality in Nigeria as a study by Mathew, Ogedebe & Ogedebe (2013, p. 549) shows that “Many Nigerians who used (sic) the internet as one form of communication or another are bombarded daily with advertisements of products and services from industries in the country.” This reality has brought a shift from mechanical to electronic and from analogue to digital; ultimately impacting the marketing realms. The internet enables these electronic/digital platforms; which marketers (E&M industry) and customers (content consumers) rely on to effectively reach and receive communication content and feedback respectively.  However, this study examined the challenges that have possibly hindered the full realization of the e-marketing tools of the Nigerian E&M industry and noted among others; poor power supply and unreliable network infrastructure in the country. There is also an increased customer expectation, security, content copyright and privacy issues as well as the challenge of compliance demand in the industry as influenced by ever dynamic digital boundaries. There is a huge economic need for the Nigerian government to live up to its obligation and enhance power supply and boost network infrastructure. The Nigerian E&M industry needs to continually integrate different digital platforms to reach targets and attract more content consumers. Both the government and industry should increasingly learn and bring a global perspective that can help the nation adapt to the constantly changing digital environment.

scholarly journals Wettbewerb im Internet: Was ist online anders als offline?

2011 ◽  
Vol 60 (2) ◽  
Author(s):  
Justus Haucap ◽  
Tobias Wenzel
Keyword(s):  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Market Concentration ◽  
The Internet ◽  
General Tendency ◽  
Market Regulation ◽  
Barriers To Entry ◽  
Online Content ◽  
Indirect Network Effects

AbstractThe Internet is characterized by competition between platforms which bring together potential partners of exchange. The degree of competition between these multi-sided platforms und market concentration are determined through (1) the strength of the direct and indirect network effects, (2) the extent of economies of scale, (3) the risk of congestition, (4) platform differentiation, and (5) the possibility of multi-homing. Depending on these factors different market concentrations and barriers to entry result. While there is no general tendency for concentration in the Internet and no general need for special market regulation of online content providers and intermediaries, single platforms may still have long lasting and significant market power which is unlikely to erode fastly, as the example of ebay illustrates.

scholarly journals System analysis of digital economy virtualization processes

2021 ◽  
Vol 50 (2) ◽  
pp. 23-39
Author(s):  
Natalia A. Simchenko ◽  
◽  
Natalia V. Apatova ◽  
Oleg L. Korolev ◽  
◽  
...  
Keyword(s):  
System Analysis ◽  
Computer Network ◽  
Digital Economy ◽  
Educational Process ◽  
The Internet ◽  
Negative Consequences ◽  
Economic Activities ◽  
Digital Platforms ◽  
Scientific Results ◽  
The Impact

The virtualization of socio-economic processes is expressed in the development of various types of economic activities in the Internet computer network, acting as the infrastructure of the modern economic system, a catalyst for globalization processes, and the main means of communication between computers, information systems of various purposes and complexity, and people. The study of the theoretical and methodological problem of digital economy virtualization processes is due to the importance of determining the structure of virtualization as a set of interconnected industries, consumption, markets, and finance on the Internet. The elements of the system combine the types of economic activities, which include entrepreneurship on the Internet, as well as information and intellectual activities. The study of this problem was carried out using empirical methods of cognition of the structure of the system analysis of digital economy virtualization processes, along with the use of scientometric methods for reviewing the methodology of the educational process for training digital economy personnel and improving their qualifications as a precursor to the design of production processes, consumption, market and financial processes occurring in a digital environment. The conducted studies make it possible to obtain scientific results in the field of structuring the socio-economic processes of virtualization, namely: a dichotomy of virtualization processes in the digital economy is proposed, taking into account the factor of education; the positive and negative consequences of virtualization for the economy and society as a whole are identified. It was concluded in the course of the study that the system analysis of digital economy virtualization processes should be based on the development of the educational component and reflect the environment of virtualization processes, including digital platforms, which, first, form the global infrastructure of the world economy; second, they contribute to the development of entrepreneurship; third, they provide production, consumer, market and financial functions and corporate governance; fourth, they are a source of network externalities that create new social and economic problems. The prospect for further research is the development of a model for assessing the impact of the structure of virtualization processes on economic growth in the digital economy.

scholarly journals Borders of Network Effects and Early Internationalization as a Latecomer Strategy

2021 ◽  
Author(s):  
Sungyong Chang ◽  
Sanghyun Park
Keyword(s):  
Network Effects ◽  
Theoretical Work ◽  
Order Effect ◽  
Global Market ◽  
Global Strategy ◽  
Network Effect ◽  
Demand Side ◽  
Early Internationalization ◽  
Indirect Network Effects ◽  
Direct Network

Scholars have examined the persistent heterogeneity of firm performance from the entry-order effect perspective. In the international business literature, this perspective has been highlighted in research on early internationalization (i.e., the born global strategy). While prior work has focused on the heterogeneity of firm characteristics and capabilities, we present a demand-side view of early internationalization by focusing on network effects. Prior theoretical work on network effects has predicted that when network effects are prominent, survival is challenging for latecomers because of the installed bases of first movers in the global market. However, we see many cases, such as the mobile instant messenger (MIM) market, where no single winner dominates the global market and where many latecomers have survived by implementing early internationalization. We build upon Brian Arthur’s model of demand-side dynamics. The findings suggest that latecomers may overcome their disadvantages by pursuing early internationalization, especially when the direct network effects (i.e., social network effects) are stronger than the indirect network effects (i.e., installed base effects). The underlying rationale is that country borders often demarcate the reach of the direct network effect, limiting the power of installed bases.

Optimization of computer testing of students: Minimizing the impact of Internet on responses

2020 ◽  
pp. 50-55
Author(s):  
A. S. Sidorenko
Keyword(s):  
Objective Assessment ◽  
Academic Disciplines ◽  
The Internet ◽  
Physical Culture ◽  
Search Queries ◽  
Computer Testing ◽  
Lecture Material ◽  
The One ◽  
The Impact ◽  
The Relationship

The purpose of the work described in the article was to study the principles of forming control questions for distance testing of students in LMS Moodle and Blackboard in such a way as to minimize the ability of test takers to use the help of search queries on the Internet. The main trends in the responses of university students are analyzed depending on the types of control questions, their wording and the relationship with the availability of lecture material. The distance electronic testing of 3rd year students of university in the discipline “Physical Culture” revealed that the greatest problems for test takers arise with questions on logic, and not on exact knowledge, the answers to which are easily found in lecture material. It was revealed that the vast majority of students when searching for answers to questions of a time-limited test are guided not by their own knowledge, but by marker words in the question text, which they create their own search queries in the text of the lecture or on the Internet. At the same time, a part of the respondents is clearly distinguished, which does not analyze the information provided, but looks at it rather superficially and tries to choose the one that is closer to the marker word from the possible answers. Based on the research and experience in the LMS environment, the article gives practical recommendations for teachers on the competent creation of control tasks and the effective management of response statistics, which will allow more objective assessment of students’ knowledge in various academic disciplines.

scholarly journals APPLICATION OF IT TOOLS IN MANAGING SMALL AND MEDIUM-SIZED ENTERPRISES IN THE CONTEXT OF CREATING ENTREPRENEURIAL ORIENTATION

2018 ◽  
Vol 17 (4) ◽  
pp. 105-113
Author(s):  
Renata Lisowska
Keyword(s):  
Entrepreneurial Orientation ◽  
Quantitative Research ◽  
The Other ◽  
The Internet ◽  
Global Competition ◽  
Small Enterprises ◽  
Survey Questionnaire ◽  
Small Companies ◽  
The One ◽  
The Impact

The presence of small and medium-sized enterprises on the Internet in the era of increasing global competition has become a necessity. These entities have begun to notice the benefits that can be obtained by using modern IT tools in various areas of their operations. The aim of the paper is to analyse and evaluate the impact of the use of IT tools in various areas of SMEs’ operations on creating their entrepreneurial orientation. The implementation of such a goal required, on the one hand, a literature review and an analysis of current research on the IT tools used by small and medium-sized enterprises in the context of creating their entrepreneurial orientation, and on the other hand, conducting the author’s own research among small companies. Quantitative research was carried out from December 2017 to January 2018 among 400 small enterprises in Poland by means of a survey questionnaire using the CATI technique.

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