Microfoundations of the Network Effect - Softcover

MERCIER, Fabien

Softcover

ISBN 10: 620201024X ISBN 13: 9786202010245

Verlag: LAP LAMBERT Academic Publishing, 2017

Inhaltsangabe

The industrial organisation literature typically assumes ex-ante utility functions to quantify the network effects of the various industries it models. In this book we present a simple analytical model which uses an explicit graph-theoretic modelling to simulate these network effects. The network effects it describes are fairly general since they are a mix of pure network effects — being able to link to more agents — and of potential cost-reductions stemming from decreasing marginal costs of the network infrastructure. The model can be applied to a variety of situations, such as telecommunication networks, the current Central Security Depositories network of cross-border links, or, alternatively, its associated custodian network. We derive close-forms of a (quadratic) network effect from the model. In particular it allows to quantify the advantage of a given individual to join a given network, and to split up analytically the various benefits expected from the network. We derive closed-form formulas in the case of homogeneous network and present the algorithms needed for Monte-Carlo simulations for the non-homogeneous case.

Über diesen Titel

Über die Autorin bzw. den Autor

Fabien Mercier has a PhD in Economics from the University Paris-Panthéon Assas, and a PhD in pure mathematics (graph theory) at Pierre et Marie-Curie. He has been economist at the European Central Bank and an analyst at the Organisation for Economic Co-Operation and Development.

Details zur Ausgabe

• Verlag: LAP LAMBERT Academic Publishing
• Erscheinungsdatum: 2017
• Sprache: Englisch
• ISBN 10: 620201024X
• ISBN 13: 9786202010245
• Einband: Taschenbuch
• Anzahl der Seiten: 68
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: Edicoes Nosso Conhecimento; customerservice@vdm-vsg.de; ; SIA; Riga; 1039; Litauen