Year: 2000
Type: article
Abstract: - According to Network Effect literature network ex-ternalities lead to market failure due to Pareto-inferior coordina-tion results. We show that the assumptions and simplifications implicitly used for modeling standardization processes fail to explain the real-world variety of diffusion courses in today’s dynamic IT markets and derive requirements for a more gen-eral model of network effects. We argue that Agent-based Com-putational Economics provides a solid basis for meeting these requirements by integrating evolutionary models from Game Theory and Institutional Economics. I.
Authors: Tim Weitzel, Oliver Wendt, Falk von Westarp
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
Funder: National Science Foundation
OpenAlex ID: W2163569522