I look at the equilibrium effects of homophily in network formation games having positive externalities. I show that … very weak preferences for network effects (such as preference for being part of a clique) may result in very high levels of … homophily at equilibrium. I present an empirical procedure that allows an evaluation of the role of network effects on the …

Due to network effects and switching costs in platform markets, entrants generally must offer revolutionary … economies of scope and price discrimination and extend this view to include the strategic management of a firm's user network …. Envelopers capture share by foreclosing an incumbent’s access to users; in doing so, they harness the network effects that …