Analysis of Network Effect in the Competition of Self-Publishing Market Li Chen Wen Tang
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NETWORK EFFECTS Welfare Even Though No Explicit Compensation Accounts for This
From the book Networks, Crowds, and Markets: Reasoning about a Highly Connected World. By David Easley and Jon Kleinberg. Cambridge University Press, 2010. Complete preprint on-line at http://www.cs.cornell.edu/home/kleinber/networks-book/ Chapter 17 Network Effects At the beginning of Chapter 16, we discussed two fundamentally different reasons why individuals might imitate the behavior of others. One reason was based on informational effects: since the behavior of other people conveys information about what they know, observ- ing this behavior and copying it (even against the evidence of one’s own private information) can sometimes be a rational decision. This was our focus in Chapter 16. The other reason was based on direct-benefit effects, also called network effects: for some kinds of decisions, you incur an explicit benefit when you align your behavior with the behavior of others. This is what we will consider in this chapter. A natural setting where network effects arise is in the adoption of technologies for which interaction or compatibility with others is important. For example, when the fax machine was first introduced as a product, its value to a potential consumer depended on how many others were also using the same technology. The value of a social-networking or media- sharing site exhibits the same properties: it’s valuable to the extent that other people are using it as well. Similarly, a computer operating system can be more useful if many other people are using it: even if the primary purpose of the operating system itself is not to interact with others, an operating system with more users will tend to have a larger amount of software written for it, and will use file formats (e.g. -
Network Economics, Transaction Costs, and Dynamic Competition
Network Economics, Vertical Integration, and Regulation Howard Shelanski May 2012 1 New Institutional Economics Key concern is governance of transactions, not price and output. Unit of analysis is the transaction Key question: why a transaction is (or should be) organized or mediated by one institution as opposed to another: Markets vs “hierarchies” E.g., a firm’s make or buy decision: why does a firm buy some things and make others? 2 Origins Ronald Coase Key lessons Property Rights/Default Rules and Transaction Costs Matter Facts and Institutions Matter Oliver Williamson Institutions have differing competencies for governing transactions in the presence of transaction costs 3 Key Assumptions of the New Institutional Economics Bounded rationality: economic actors intend to be rational but are only limitedly so. Opportunism: economic actors will expect others to act opportunistically and seek mechanisms (institutions) to protect themselves from hold-up. Asset specificity: Specific investment is the key variable that allows opportunism and drives firms from markets toward hierarchical institutions. 4 The “Coase Theorum” Pollution example: a plant pollutes and imposes costs on a nearby farm. To what extent should the plant be allowed to pollute or the farmer be allowed to keep farming? theorum version 1: As long as both parties are free to bargain, the final amount of pollution not depend on the initial allocation of property rights. theorum version 2: when transactions costs exist, the final amount of pollution depends on the initial allocation of property rights. 5 Lessons and Policy Implications Institutions arise to economize on transaction costs. Sometimes private bargaining is best, at other times other institutions are more efficient. -
Platform Envelopment Working Paper
Platform Envelopment Thomas Eisenmann Geoffrey Parker Marshall Van Alstyne Working Paper 07-104 Copyright © 2007, 2008, 2009, 2010 by Thomas Eisenmann, Geoffrey Parker, and Marshall Van Alstyne Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Platform Envelopment Thomas Eisenmann, Geoffrey Parker, Marshall Van Alstyne Revised, July 27 2010 ABSTRACT Due to network effects and switching costs in platform markets, entrants generally must offer revolutionary functionality. We explore a second entry path that does not rely upon Schumpeterian innovation: platform envelopment. Through envelopment, a provider in one platform market can enter another platform market, combining its own functionality with the target’s in a multi-platform bundle that leverages shared user relationships. We build upon the traditional view of bundling for economies of scope and price discrimination and extend this view to include the strategic management of a firm's user network. Envelopers capture share by foreclosing an incumbent’s access to users; in doing so, they harness the network effects that previously had protected the incumbent. We present a typology of envelopment attacks based on whether platform pairs are complements, weak substitutes or functionally unrelated, and we analyze conditions under which these attack types are likely to succeed. Keywords: Market entry, platforms, network effects, bundling, foreclosure Acknowledgements: Funding from NSF grant SES-0925004 is gratefully acknowledged. Thomas Eisenmann Geoffrey Parker Marshall Van Alstyne Professor Associate Professor Associate Professor Harvard Business School Freeman School of Business Boston University SMG Rock Center 218 Tulane University 595 Commonwealth Ave. -
Critical Mass and Network Evolution in Telecommunications
Forthcoming in Toward a Competitive Telecommunications Industry: Selected Papers from the 1994 Telecommunications Policy Research Conference, Gerard Brock (ed.), 1995. Critical Mass and Network Evolution in Telecommunications by Nicholas Economides and Charles Himmelberg December 1994 Abstract Network goods exhibit positive consumption externalities, commonly known as "network externalities." In markets, this fact can give rise to the existence of a critical mass point, that is, a minimum network size that can be sustained in equilibrium, given the cost and market structure of the industry. In this paper, we describe the conditions under which a critical mass point exists for a network good. We also characterize the existence of critical mass points under various market structures. Surprisingly, neither existence nor the size of the minimum feasible network depends on market structure. Thus, even though a monopolist enjoys an additional degree of freedom through its influence over expectations, and even though monopolistic and oligopolistic markets will in general provide a smaller sized network than perfect competition, the critical mass point is nonetheless the same. We extend these results by making the model dynamic and by generalizing it to allow durable goods. Introducing network externalities to a dynamic model of market growth increases the speed at which market demand grows in the presence of a downward time trend for industry marginal cost. We use this prediction to calibrate the model and obtain estimates of the parameter measuring a consumer’s valuation of the installed base (i.e., the network effect) using aggregate time series data on prices and quantities in the US fax market. -
The Publishing Plan
NONFICTIONTHE BOOK PUBLISHING PLAN THE PROFESSIONAL GUIDE TO PROFITABLE SELF-PUBLISHING STEPHANIE CHANDLER KARL W. PALACHUK Copyright © 2018 by Stephanie Chandler and Karl W. Palachuk. All rights reserved. No part of this publication may be reproduced, stored in a retrieval sys- tem, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior written permission of the author. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representa- tions or warranties with respect to the accuracy or completeness of the con- tents of this book and specifically disclaim any implied warranties of mer- chantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional when appropriate. Neither the publisher nor the author shall be liable for any loss of profit or any other commer- cial damages, including but not limited to special, incidental, consequential, personal, or other damages. The Nonfiction Book Publishing Plan The Professional Guide to Profitable Self-Publishing By Stephanie Chandler and Karl W. Palachuk 1. LAN027000 2. LAN002000 3. REF026000 Print ISBN: 978-1-949642-00-1 Ebook ISBN: 978-1-949642-01-8 Printed in the United States of America Authority Publishing 11230 Gold Express Dr. #310-413 Gold River, CA 95670 800-877-1097 AuthorityPublishing.com CONTENTS Chapter 1: The Business of Self-Publishing Nonfiction Books . -
Network Effects on Tweeting
Network Effects on Tweeting Jake T. Lussier and Nitesh V. Chawla Interdisciplinary Center for Network Science and Applications (iCeNSA), University of Notre Dame, Notre Dame, IN 46556, USA {jlussier,nchawla}@nd.edu http://www.nd.edu/∼(jlussier,nchawla)/ Abstract. Online social networks (OSNs) have created new and exciting ways to connect and share information. Perhaps no site has had a more profound effect on information exchange than Twitter.com. In this pa- per, we study large-scale graph properties and lesser-studied local graph structures of the explicit social network and the implicit retweet network in order to better understand the relationship between socialization and tweeting behaviors. In particular, we first explore the interplay between the social network and user tweet topics and offer evidence that suggests that users who are close in the social graph tend to tweet about simi- lar topics. We then analyze the implicit retweet network and find highly unreciprocal links and unbalanced triads. We also explain the effects of these structural patterns on information diffusion by analyzing and vi- sualizing how URLs tend to be tweeted and retweeted. Finally, given our analyses of the social network and the retweet network, we provide some insights into the relationships between these two networks. Keywords: Data mining, social networks, information diffusion. 1 Introduction A microblogging service launched in 2006, Twitter.com has since grown into one of the most popular OSNs on the web and one of the most prominent technologi- cal influences on modern society. Twitter is not only an environment for social tie formation, but also for information exchange and dissemination. -
An Overview of Social Networks and Economic Applications∗
An Overview of Social Networks and Economic Applications∗ Matthew O. Jackson† Final Version: June 25, 2010 Written for the Handbook of Social Economics‡ Abstract In this chapter I provide an overview of research on social networks and their role in shaping behavior and economic outcomes. I include discussion of empirical and the- oretical analyses of the role of social networks in markets and exchange, learning and diffusion, and network games. I also include some background on social network char- acteristics and measurements, models of network formation, models for the statistical analysis of social networks, as well as community detection. Keywords: Social Networks, Network Games, Graphical Games, Games on Net- works, Diffusion, Learning, Network Formation, Community Detection, JEL Classification Codes: D85, C72, L14, Z13 1 Introduction The people with whom we interact on a regular basis, and even some with whom we in- teract only sporadically, influence our beliefs, decisions and behaviors. Examples of the effects of social networks on economic activity are abundant and pervasive, including roles in transmitting information about jobs, new products, technologies, and political opinions. ∗Financial support from the NSF under grant SES–0647867 is gratefully acknowledged. Thank you to Matthew Elliott, Carlos Lever, and Yves Zenou for comments on earlier drafts. †Department of Economics, Stanford University, Stanford CA 94305, USA. http://www.stanford.edu/∼jacksonm e-mail: [email protected] ‡Edited by Jess Benhabib, Alberto Bisin, and Matthew O. Jackson, forthcoming, Elsevier Press. 1 They also serve as channels for informal insurance and risk sharing, and network structure influences patterns of decisions regarding education, career, hobbies, criminal activity, and even participation in micro-finance. -
Network Effects, Trade, and Productivity
Preprint, forthcoming on Managerial and Decision Economics ∗ Network Effects, Trade, and Productivity Tianle Song† and Susheng Wang‡ April, 2019 Abstract: We consider network effects in the monopolistically competitive model of trade devel- oped by Melitz and Ottaviano (2008). We show that a larger network effect intensifies competition by allowing more productive firms to raise prices and earn higher profits, but forcing less productive firms to reduce prices and earn lower profits. As a result, low productivity firms are driven out of the market. We also show that when network effects are asymmetric, it may be difficult for firms from a country with a small network effect to compete with firms from a country with a large network effect. Keywords: network effects, heterogeneous firms, international trade, productivity JEL classification: F10, F12 ∗ We thank the editor and an anonymous referee for their constructive and insightful feedback. † Corresponding author. Institute for Social and Economic Research, Nanjing Audit University. Email: tsong @connect.ust.hk. ‡ Department of Economics, Hong Kong University of Science and Technology. Email: [email protected]. 1. Introduction A network effect is a positive effect that arises when the value of a product or service to a user in- creases with the total number of users. Many products, especially telecommunication products and consumer electronics, feature network effects. As an example, the consumer utility of using a tele- phone increases directly with the size of the communication network. Consumer benefits can also depend indirectly on the size of the network. For instance, the users of Macintosh computers are better off when there are more users, because the increased demand may lead to a greater variety of Macintosh software (Church et al. -
Ebook Market of The
Valitse kohde. - VALITSE KOHDE. VALITSE KOHDE. EBOOK MARKET OF THE USA Litnet case Author/s: Andrii Tytenko eSAVONIA UNIVERSITY OF APPLIED SCIENCES THESIS Abstract Field of Study Social Sciences, Business and Administration Degree Programme Degree Programme in International Business Author(s) Andrii Tytenko Title of Thesis eBook market of the USA: Litnet case Date 14.12.2019 Pages/Appendices 49 Supervisor(s) Virpi Oksanen, Ari Pitkänen Client Organisation /Partners Litnet Abstract The eBook market in the USA is the largest English-speaking eBook market. The purpose of the thesis was to do profound research on the eBook market in the USA for the case company Litnet. The importance of this research derives from the case company’s interest in the market. The research conducted for Litnet was made by utiliZing several marketing research frameworks such as PEST analysis, Porter’s Five Forces model, and SWOT analysis. Both qualitative and quantitative research methods were applied in the study. The research discovered that the overall attractiveness of the US market is high for Litnet. The research showed that the industry infrastructure is favourable. The market is characterized by a high level of rivalry and low en- trance barriers. There are different models of eBooks distribution, such as traditional per copy sales, subscription services, and pay per chapter services. The market may experience pressure from audiobooks and print books sales. Litnet may use the differentiation strategy to escape the direct competition in the market. The research gives an overview of the eBook market in the USA and analyses prerequisites for Litnet's possible market strate- gies. -
Ipad Educational Apps This List of Apps Was Compiled by the Following Individuals on Behalf of Innovative Educator Consulting: Naomi Harm Jenna Linskens Tim Nielsen
iPad Educational Apps This list of apps was compiled by the following individuals on behalf of Innovative Educator Consulting: Naomi Harm Jenna Linskens Tim Nielsen INNOVATIVE 295 South Marina Drive Brownsville, MN 55919 Home: (507) 750-0506 Cell: (608) 386-2018 EDUCATOR Email: [email protected] Website: http://naomiharm.org CONSULTING Inspired Technology Leadership to Transform Teaching & Learning CONTENTS Art ............................................................................................................... 3 Creativity and Digital Production ................................................................. 5 eBook Applications .................................................................................... 13 Foreign Language ....................................................................................... 22 Music ........................................................................................................ 25 PE / Health ................................................................................................ 27 Special Needs ............................................................................................ 29 STEM - General .......................................................................................... 47 STEM - Science ........................................................................................... 48 STEM - Technology ..................................................................................... 51 STEM - Engineering ................................................................................... -
No Bull Self-Promotion for Independent Authors No Bull Self-Promotion for Independent Authors
Digital Proofer No Bull Self-Promoti... Authored by Jennifer-Crystal J... 6.0" x 9.0" (15.24 x 22.86 cm) Black & White on White paper 130 pages ISBN-13: 9781544744773 No Bull Self-Publishing presents… ISBN-10: 1544744773 Please carefully review your Digital Proof download for formatting, grammar, and design issues that may need to be corrected. No Bull Self-Promotion We recommend that you review your book three times, with each time focusing on a different aspect. Check the format, including headers, footers, page 1 numbers, spacing, table of contents, and index. for Independent Authors 2 Review any images or graphics and captions if applicable. 3 Read the book for grammatical errors and typos. Jennifer-Crystal Johnson Once you are satisfied with your review, you can approve your proof and move forward to the next step in the publishing process. To print this proof we recommend that you scale the PDF to fit the size of your printer paper. www.NoBullSelfPublishing.com No Bull Self-Promotion for Independent Authors No Bull Self-Promotion for Independent Authors www.NoBullSelfPublishing.com www.NoBullSelfPublishing.com Copyright © 2015-2017 by Jennifer-Crystal Johnson Need to Learn the “How to” Part? All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including Before we get into the nitty-gritty of marketing your books, where photocopying, recording, or other electronic or mechanical are you in your publishing process? If you’re still writing your book, methods, without the prior written permission of the publisher, great! That’s the perfect place to be while you’re learning about except in the case of brief quotations embodied in critical reviews everything you should do once your book gets close to publication and certain other noncommercial uses permitted by copyright law. -
Collaborative Production and the Transformation of Publishing: the Case of Wattpad Rosamund Davies University of Greenwich
CHAPTER FOUR Collaborative Production and the Transformation of Publishing: The Case of Wattpad Rosamund Davies University of Greenwich Collaborative production is another way to describe what Bauwens terms peer-to-peer (P2P) production, whereby P2P collaborators work together to construct a shared commons and use value (Bauwens, 2005). This approach to production has been enabled on a large scale by the widespread availabil- ity, low cost and connectivity of digital technologies (Bauwens, 2005, Benkler, 2006). Examples of such practices might include the open software movement, crowdsourcing and crowdfunding initiatives, MMOGs (massively multiplayer online games) and fandoms, among others. Although the core aims and val- ues of collaborative production and its products are generally understood to be non-market based, many of its manifestations are interdependent with the market-based economy (Bauwens, 2005, Benkler, 2006, Jenkins, 2013, Arvids- son, 2013), as we shall go on to examine. The social reading and writing platform, Wattpad, offers a fairly recent exam- ple of such collaborative production. Wattpad is a digital enterprise, founded in How to cite this book chapter: Davies, R. 2017. Collaborative Production and the Transformation of Publishing: The Case of Wattpad. In: Graham, J. and Gandini, A. (eds.). Collaborative Production in the Creative Industries. Pp. 51–67. London: University of Westminster Press. DOI: https://doi.org/10.16997/book4.d. License: CC-BY-NC- ND 4.0 52 Collaborative Production in the Creative Industries 2008 in Canada, but with a global user base of 40 million at the time of writing (Wattpad, 2016a). Around 80 per cent of this user base is 30 years old or under (around 40 per cent 13-17 and 40 per cent 18-30 year olds) (Wattpad, 2016f).