Development of a technological competition model in the presence of network effects from the modified law of Metcalfe

José López-Sánchez (), José Arroyo-Barrigüete () and Domingo Ribeiro ()

Service Business, 2008, vol. 2, issue 2, 83-98

Abstract: The objective of this paper is to propose a new model of competence in presence of network effects. We will introduce some modifications in the Lotka-Volterra model, in order to solve its deficiencies. The main improvement is to introduce a modification of Metcalfe’s Law, what allow us to reflect the effect of congestion externalities. The model’s validation, developed by numerical simulation, confirms that its behaviour is quite similar to that observed in real markets. Copyright Springer-Verlag 2008

Keywords: Network effects; Technology competence; Metcalfe’s law; Dynamical systems (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11628-007-0025-z

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