Network Externalities (Effects)

Stan J. Liebowitz, Management School, University of Texas at Dallas, and Stephen E. Margolis, Department of Economics, North Carolina State University

1/01/2005
(Original Publish Date: 2000)

Concern about marginal adjustment of the level of network activity has not been the primary focus of the network externality literature. Instead, this literature has focused primarily on selection among competing networks. Our discussion follows this relative emphasis. We briefly consider the issue of levels of network activities in section two, then turn to the choice of networks.