The Economics of Networks: A Survey of the Empirical Literature

Birke, Daniel

doi:10.1111/j.1467-6419.2009.00578.x

Cited by 84 publications

(18 citation statements)

References 72 publications

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“…Noticeably, the Bosnia market dynamics rely on a different set of pertinent issues, to some extent confirming the findings of Grajek (2010) as well as Sobolewski and Czajkowsi (2012). Also, our findings have confirmed the importance of social ties like family or friends in carrier selection rather than the overall size of the operator or price (Karacuka et al, 2013), and clearly show that social networks, compared to price or the installed base, have more significant influence on operator choice, confirming the findings of Birke (2009) and Basaran et al (2014).…”

Section: Discussionsupporting

confidence: 85%

“…In other words, a newcomer to the market will not be able to estimate all effects of its entry, which could result in an increase in average cost and ultimately increase in prices for consumers. Also, one of the key characteristics of network industries is the existence of network effects whereas the greater the number of people are using product or service it becomes more valuable for all the consumer using it (Rohlfs, 1974;Katz and Shapiro, 1994;Arthur, 1990Arthur, , 1996Economides, 1996;Birke, 2009). Often, the success of certain products/services in network industries cannot be attributed to superior technology or better solutions, but to compatibility with other products and/or the overall size of their networks.…”

Section: Introductionmentioning

confidence: 99%

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Bosna-Hersek`teki̇ Telei̇leti̇şi̇m Sektörünün Düzenleme Zorluklari

Zaimović

2018

İktisadi İdari Ve Siyasal Araştırmalar Dergisi

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Much anticipated privatization of the two remaining incumbent telecom operators in Bosnia will create a new dynamic and changing environment for all participants in this sector, especially for potential investors that are trying to find the right approach and a competitive market niche. The intention of this paper is to provide an overview of regulatory developments in the telecommunication sector over the past two decades, major challenges, accomplishments, and the role played by State Communication Regulatory Agency (CRA). The research includes the analyses of adopted Sector Policies, the Telecommunication Law itself, as well as the rules and major decisions issued by CRA. Through a countrywide survey and multinomial logit estimation of consumer's selection between the two largest mobile carriers, as well as in-depth interviews with the sector participants and CRA-we provided consumers' and participants' opinions of the sector development, achievements, challenging issues, and major stepping stones. Asserting its role as an independent regulatory authority and despite unprecedented political difficulties, the CRA has managed to complete the overall process of sector liberalization. It has done so mostly by utilizing an ex-ante form of regulation and proactively addressing critical areas for the sector development. But, market conditions are constantly changing and the demand for ex-post regulation will bring new challenges for regulatory authorities. The privatization of remaining incumbent carriers, making the maximum use of local-loop unbundling and open network provision, is only one of them. Also, securing the balanced infrastructure development and ensuring that the overall social welfare gains are equally distributed throughout the country will present new and evermore challenging questions for country telecommunication regulatory authorities.

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Section: Discussionsupporting

confidence: 85%

Section: Introductionmentioning

confidence: 99%

Bosna-Hersek`teki̇ Telei̇leti̇şi̇m Sektörünün Düzenleme Zorluklari

Zaimović

2018

İktisadi İdari Ve Siyasal Araştırmalar Dergisi

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“…We can also compare the results in the current research with the literature on product standards, which has demonstrated that competition can result in the adoption or preservation of socially inefficient standards (see, e.g., Bessen and Farrell 1994; Farrell and Saloner 1985, 1986; Katz and Shapiro 1985, 1994). Although the body of theoretical work is now extensive, there has been recent recognition that more empirical work on this topic is needed (Birke 2009; Suarez 2005). Much of the literature stream has focused on the role of network effects in technology markets (see, e.g., Basu, Mazumdar, and Raj 2003; Dubé, Hitsch, and Chintagunta 2010; Gupta, Jain, and Sawhney 1999; Sun, Xie, and Cao 2004; Wang and Xie 2011).…”

Section: Related Literaturementioning

confidence: 99%

Advertising in a Competitive Market: The Role of Product Standards, Customer Learning, and Switching Costs

Anderson

Simester

2013

Journal of Marketing Research

124

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Standard models of competition predict that firms will sell less when competitors target their customers with advertising. This is particularly true in mature markets with many competitors selling relatively undifferentiated products. We present findings from a large-scale randomized field experiment that contrast sharply with this prediction. The field experiment measures the impact of competitors' advertising on sales at a private label retailer of apparel, home furnishings and sporting goods. Surprisingly, for a substantial segment of customers the competitors' advertisements increased sales at this retailer. This is a robust effect, obtained through experimental manipulation and measuring actual purchases by large samples of randomly assigned customers. The effect is also large with customers ordering over 4% more items in some categories in the Treatment condition (compared to the control). We compare how these positive spillovers vary across product categories to illustrate the importance of product standards, customer learning, and switching costs. The findings have the potential to change our understanding of competition in mature markets.

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“…A large empirical literature has supported the important role of social influences in explaining individual choices regarding a variety of economic, social and health behaviours (see Brock and Durlauf (2001) and Birke (2009) for a survey). In what follows, we use the terms social interaction, network effects and peer or social influences as synonymous, to indicate what has been referred to by Manski (1993) as an endogenous effect.…”

Section: Introductionmentioning

confidence: 99%

Social Interaction in Patients’ Hospital Choice: Evidence from Italy

Moscone

Tosetti

Vittadini

2011

Journal of the Royal Statistical Society Series A: Statistics in Society

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Summary. We study the influence of social interaction on patients’ choice of hospital and its relationship with the quality that is delivered by hospitals, using Italian data. We explore the effect on individual choices of a set of variables such as travel distance and individual‐ and hospital‐specific characteristics, as well as a variable capturing the effect of the neighbourhood. The richness of our data allows us to disentangle the influence of sharing information (the network) on patients’ choices of hospital from contextual effects. Our empirical investigation suggests that past experience in the utilization of health services by the network plays a significant role in explaining current patients’ choices of hospital. Other relevant factors that influence patients’ decisions of being admitted in a particular hospital are prior use of health services in that hospital, patient‐to‐hospital distance and supply factors such as the number of beds and number of doctors. We then investigate the relationship between a set of health outcome indicators and the sensitivity of patients’ choices to the network, to test whether sharing information increases the likelihood of selecting a high quality hospital. Our results suggest that social interaction does not have an influence on health outcomes, and in some cases it may even mislead patients, who end up in low quality institutions. One explanation for this result is the absence of a source of information on the quality of hospitals that is accessible to all individuals, such as guidelines or star ratings, which may exacerbate the influence of information that is gathered locally on choices of hospital and may result in a lower degree of competition between hospitals and lower quality.

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The Economics of Networks: A Survey of the Empirical Literature

Cited by 84 publications

References 72 publications

Bosna-Hersek`teki̇ Telei̇leti̇şi̇m Sektörünün Düzenleme Zorluklari

Bosna-Hersek`teki̇ Telei̇leti̇şi̇m Sektörünün Düzenleme Zorluklari

Advertising in a Competitive Market: The Role of Product Standards, Customer Learning, and Switching Costs

Social Interaction in Patients’ Hospital Choice: Evidence from Italy

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