Information rules: a strategic guide to the network economy
Information rules: a strategic guide to the network economy
Small worlds: the dynamics of networks between order and randomness
Small worlds: the dynamics of networks between order and randomness
Simulation for the Social Scientist
Simulation for the Social Scientist
Communications of the ACM
Social interaction in virtual communities: the significance of technology
International Journal of Web Based Communities
A hedonic study of network effects in the market for word processing software
Decision Support Systems - Special issue: Economics and information systems
Impact of network effects and diffusion channels on home computer adoption
Decision Support Systems
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Much of the existing work on network externalities has assumed that network effects are dependent on network size. Very little consideration has been given to the view that marginal benefits from joining the network may not increase with network size, if consumer benefits come from direct interactions with neighbors in a local network. We use agent-based simulation to examine the effectiveness of the traditional network market strategy in the presence of a local network. Our results show that it is appropriate to establishing a sustainable network by leveraging the properties of local networks.