The Economics of Networks: Outline

The Economics of Networks

by Nicholas Economides

October 1996, International Journal of Industrial Organization

Below you find "The Economics of Networks" on line. If you prefer, you can download it in [Postscript]. The postscript file is also available in compressed ([Zipped]) form. The document is also available in "pdf" format that is readable by Adobe's Acrobat by clicking on [Acrobat]. Acrobat (.pdf) documents are printable on almost every printer. The Acrobat browser is available free of charge.

Section 1: Introduction
Section 2: Classification of Networks
Section 3: Network Externalities
Section 3.1: Sources of Network Externalities
Section 3.2: The "Macro" Approach
Section 3.2.1: Perfect Competition
Section 3.2.2: Monopoly
Section 3.2.3: Oligopoly and Monopolistic Competition Under Compatibility
Section 3.2.4: Oligopoly Under Incompatibility
Section 3.2.5: Coordination to Technical Standards with Asymmetric Technologies
Section 3.3: The "Micro" Approach
Section 3.3.1: Mix and Match: Compatibility vs. Incompatibility
Section 3.3.2: Changes in the Number of Varieties as a Result of Compatibility Decisions
Section 3.3.3: Quality Coordination in Mix-and-Match
Section 4: Network Externalities and Industry Structure
Section 4.1: Invitations to Enter
Section 4.2: Interconnection or Foreclosure by a Local Monopolist
Section 5: Sequential Games
Section 6: Markets for Adapters and Add-ons
Section 7: Concluding Remarks

Back to the top page (Internet Site for Network Economics)

Copyright © 1995, N. Economides.