Many commodities are such that the utility they create for individual consumers depends positively on the number of people also consuming these goods. Prominent examples among others are mobile phones, game consoles, and computer software. The customers form a network, where the size of the...

Through altering competitive conditions, globalisation can have a significant impact on productivity of the domestic economy. Foreign competition can stimulate the productivity improvements by domestic firms or it can lead to the elimination of inefficient producers. Alternatively, the threat or...