The Economics of Networks

Nicholas Economides ()

Brazilian Electronic Journal of Economics, 1997, vol. 1, issue 0

Abstract: I analyze the salient features of networks and point out the similarities between the economic structure of networks and the structure of vertically related industries. The analysis focuses on positive consumption and production externalities, commonly called network externalities. I discuss their sources and their effects on pricing and market structure. I distinguish between results that do not depend on the underlying industry microstructure (the "macro" approach) and those that do (the "micro" approach). I analyze the issues of compatibility, coordination to technical standards, interconnection and interoperability, and their effects on pricing and quality of services and on the value of network links in various ownership structures. I also briefly discuss the issue of interconnection fees for bottleneck facilities.

Keywords: Networks; Market Structure; Externalidades (search for similar items in EconPapers)
JEL-codes: L1 L2 (search for similar items in EconPapers)
Date: 1997
Note: Reprinted with permission from the International Journal of Industrial Organization, Vol. 14, N. 6 pp 670-699, 1996. Elsevier Science.
References: Add references at CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.beje.decon.ufpe.br/economides.htm Full text (text/html)

Related works:
Journal Article: The economics of networks (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bej:issued:v:1:y:1997:i:0:economides

Ordering information: This journal article can be ordered from
http://www.beje.decon.ufpe.br/

Access Statistics for this article

Brazilian Electronic Journal of Economics is currently edited by Jose Ricardo Nogueira

More articles in Brazilian Electronic Journal of Economics from Department of Economics, Universidade Federal de Pernambuco Contact information at EDIRC.
Bibliographic data for series maintained by Jose Ricardo Nogueira ().