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NETWORK BENEFIT FUNCTION AND INDIRECT NETWORK EXTERNALITIES

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한국경제학회 (The Korean Economic Association)|2006.06|The Korean Economic Review|제22권 제1호|pp. 5-19

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참고문헌

주제분류경제학

초록

Abstract

In most theoretical and empirical studies of network externalities, the consumer's benefit from network externalities is represented by the network benefit function which is a function of the number of users (the network size) and is well taken as intuitive in the case of direct network externalities. In this paper, we explicitly model the mechanism of indirect network externalities as a positive feedback effect of the demands for a hardware product via an increased variety of available software, providing conditions in which the network benefit function can be derived in the presence of indirect network externalities. Moreover, it will be shown that a linear network benefit function can be obtained under a specific utility function of a hardware/software system.

참고문헌 (19)

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