The Economics of Networks: a Survey of the Empirical Literature
Year: 2009
Type: article
Abstract: Network effects, the increase in value of consuming a product if many other consumers use the same product, are a feature of many markets and in particular of many high‐technology products. This paper surveys the burgeoning empirical literature that has developed especially during the last years. After theoretical work dominated the earlier years of research in this area, newer research has combined theoretical models with empirical studies and applied work with direct implications for public policy, marketing and company strategies. Furthermore, insights from the study of social networks have been applied to analyse how consumers interact with each other. The paper argues that a closer analysis of the network structure of consumer interaction promises fruitful future research avenues and advances in our understanding of how network effects operate.
Source: Journal of Economic Surveys
Author: Daniel Birke
Institution: University of Nottingham
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3122511565