This paper investigates how the destabilizing of a social network may increase the scope of network externalities, using data on sales of a video-calling system made to an investment bank's employees and subsequent usage by these customers. The terrorist attacks of 2001 led potential customers...

Digital technology is the representation of information in bits, reducing the costs of collecting, storing, and parsing customer data. This has led to a reduction of five costs: Search costs, replication costs, transportation costs, tracking costs, and verification costs. In this article, we...