Internet network externalities

Russel Cooper and Gary Madden

International Journal of Management and Network Economics, 2008, vol. 1, issue 1, 21-43

Abstract: A driving force behind the emergence of the 'new' or information economy is the growth of the internet network capacity. A fundamental problem in mapping this dynamic is the lack of an acceptable theoretical framework through which to direct empirical investigations. Most of the models in the literature on network externalities have been developed in a static framework, with the externalities viewed as instantaneous or self-fulfilling. The model specified here builds on the received theory from several sources to extend these features and develops a dynamic model that is both capable of econometric estimation and which provides as an output a direct measure of the network effect. Accordingly, the main goal of this paper is to find the magnitude of the external effect on internet network growth. In addition, this paper illustrates the ability of the panel data to generate estimates of structural parameters capable of explaining internet host growth.

Keywords: information economy; network externalities; internet growth; network economics. (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=18678 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Internet network externalities (2008)
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:ids:ijmnec:v:1:y:2008:i:1:p:21-43

Access Statistics for this article

More articles in International Journal of Management and Network Economics from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().