Year: 2015
Type: dissertation
Abstract: A network good is a product or service which becomes inherently more valuable as its adoption increases. The mechanism driving this value varies by context: for example, a software ecosystem produces more software as the “installed base” of its consumers and developers grows; the quality of content improves as a information aggregator collects information from more users; and the liquidity of an exchange-traded product increases as more investors trade the product. I begin my thesis with a puzzle: why are new network goods more likely to succeed in some markets than others? I show, both via a formal model and empirical analyses, that the likelihood of a network good's success depends on structural features of the innovation and its market. Tailoring entry and growth strategies to fit these features present new opportunities for established firms and entrepreneurs.
Author: Tina Y. Tang
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2336566825