Showing 1 - 10 of 31
This paper proposes a revealed preference test of network formation models. Specifically, I consider network formation models where agents are (1) strategic, (2) externalities are confined to within an agent’s k-neighborhood, where k can be varied. I show that this model can be tested...
Persistent link: https://www.econbiz.de/10011141094
We develop a model of dynamic platform formation under positive platform externalities. Users can switch between an incumbent and entrant platforms, switching opportunities arise stochastically and users can choose whether to accept or reject an opportunity to switch. For homogeneous users, we...
Persistent link: https://www.econbiz.de/10011141095
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
One of the most salient issues faced by platforms like newspapers and credit card issuers is that users are heterogeneous in the value they bring to other users or to the platform. We develop a model with multi-dimensional heterogeneity where a monopoly platform chooses (price or non-price)...
Persistent link: https://www.econbiz.de/10010905462
This paper proposes approximate variational inference methods for estimation of a strategic model of social interactions. Players interact in an exogenous network and sequentially choose a binary action. The utility of an action is a function of the choices of neighbors in the network. I prove...
Persistent link: https://www.econbiz.de/10010905473
The growing importance of online social networks makes it interesting to ask whether extant social capital can substitute for trust built through repeated interactions. It also provides fertile ground for researchers seeking to gain a deeper understanding of fundamental constructs of human...
Persistent link: https://www.econbiz.de/10010930539
Abstract I model dynamic product design along price and non-price dimensions by a firm in a market with positive network externalities between consumers. In the case of a usage fee, I provide conditions under which the steady state (SS) is unique and show that the introductory price is negative...
Persistent link: https://www.econbiz.de/10010934839
We analyze the linking and versioning strategies of a media firm when facing competition from blogs, search engines and news aggregators. First, we show that when the publisher competes against a blog it is less likely to release a “fighting version” if this generates significant spillovers...
Persistent link: https://www.econbiz.de/10010584164
It has been conjectured that the peer-based recommendations associated with electronic commerce lead to a redistribution of demand from popular products or "blockbusters" to less popular or "niche" products, and that electronic markets will therefore be characterized by a "long tail" of demand...
Persistent link: https://www.econbiz.de/10005040808
This paper proposes a holistic view of a network organization’s computing environment to examine computer virus propagation patterns. We empirically examine a large-scale organizational network consisting of both social network and technological network. By applying information retrieval...
Persistent link: https://www.econbiz.de/10005585451