Showing 1 - 10 of 52
This paper examines social interactions when social networking is endogenous. It employs a linear-quadratic model that accommodates contextual e®ects, and endogenous local inter- actions, that is where individuals react to the decisions of their neighbors, and endogenous global ones, where...
Persistent link: https://www.econbiz.de/10005760658
Ballester, Calvo-Armengol, and Zenou (2006, Econometrica, 74/5, pp. 1403-17) show that in a network game with local payoff complementarities, together with global uniform payoff substitutability and own concavity effects, the intercentrality measure identifies the key player - a player who, once...
Persistent link: https://www.econbiz.de/10005760663
I develop a framework to explain why identity divides some communities and not others. An identity group is defined as a group of individuals with the same `culture'. A community is divided when different identities are socially segregated; a community is integrated when there is no social...
Persistent link: https://www.econbiz.de/10008672211
Understanding the process of software adoption is of paramount importance to software start-ups. We study a monopolistic seller’s optimal consumer network structure formation (seeding, segmentation, sequencing, and pricing strategies) under network effects. We demonstrate the importance of...
Persistent link: https://www.econbiz.de/10010905452
Since 2008, multiple smartphone platforms have launched versions of “app stores”, marketplaces where consumers can purchase and download software applications for their smartphone. This paper provides evidence for both demand and supply of “apps” using data on the size and composition of...
Persistent link: https://www.econbiz.de/10010905456
Consumer review systems have become an important marketing communication tool through which consumers share and learn product information. Although there is abundant evidence that consumer reviews have significant impact on consumer purchasing decisions, the design of consumer review systems and...
Persistent link: https://www.econbiz.de/10010905464
How has the Internet affected newspaper content? We build a dataset that matches newspaper readability measures to Internet penetration at the county-year level from 2000 – 2008. We document a positive relationship between Internet penetration and newspaper readability. This result appears...
Persistent link: https://www.econbiz.de/10010933640
We analyze how network effects affect competition in the nascent cryptocurrency market. We do so by examining the changes over time in exchange rate data among cryptocurrencies. Specifically, we look at two aspects: (1) competition among different currencies, and (2) competition among exchanges...
Persistent link: https://www.econbiz.de/10010933643
We examine how standardization in the information and communication technologies affects the inventive activities of firms that do not contribute standards but potentially produce to the standards. In the context of the Internet Engineering Task Force, we find that as a technological area...
Persistent link: https://www.econbiz.de/10010936551
We study optimal cartel prices in a two-sided market. We present a simple model showing that prices above the two-sided monopoly price may prevail on one side of a two-sided market as a means to enhance the sustainability of the cartel. We prove that in such a case a higher benefit from the...
Persistent link: https://www.econbiz.de/10010936552