Economics of Information and the Internet

  1. Network Economics
    1. Network Effects
      1. Definition and Significance
        1. Network Externalities Concept
          1. Value Creation Through Networks
          2. Direct Network Effects
            1. User-to-User Value Creation
              1. Communication Networks
                1. Telephone Networks
                  1. Email Systems
                    1. Social Media Platforms
                    2. Metcalfe's Law
                      1. Network Value Proposition
                        1. Limitations and Criticisms
                      2. Indirect Network Effects
                        1. Complementary Goods and Services
                          1. Two-Sided Network Effects
                            1. Platform Ecosystems
                              1. Operating Systems
                                1. Video Game Consoles
                                  1. App Stores
                                  2. Standards and Compatibility
                                  3. Measurement of Network Effects
                                    1. Network Value Metrics
                                      1. User Engagement Indicators
                                        1. Network Density Measures
                                      2. Market Dynamics with Network Effects
                                        1. Positive Feedback Loops
                                          1. Self-Reinforcing Adoption
                                            1. Virtuous Cycles
                                              1. Market Momentum
                                              2. Critical Mass and Tipping Points
                                                1. Adoption Thresholds
                                                  1. Early Adopter Strategies
                                                    1. Adoption Curves
                                                      1. S-Curve Adoption
                                                        1. Crossing the Chasm
                                                      2. Lock-in and Switching Costs
                                                        1. Sources of Switching Costs
                                                          1. Learning Costs
                                                            1. Transaction Costs
                                                              1. Contractual Costs
                                                                1. Network-Based Costs
                                                                2. Customer Retention Strategies
                                                                  1. Switching Cost Management
                                                                  2. Path Dependence
                                                                    1. Historical Accidents
                                                                      1. Market Dominance Through Timing
                                                                        1. Standards Wars
                                                                          1. VHS vs. Betamax
                                                                            1. Browser Wars
                                                                              1. Format Battles
                                                                            2. Winner-Take-All Markets
                                                                              1. Market Concentration Tendencies
                                                                                1. Dominant Platform Emergence
                                                                                  1. Competitive Dynamics

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                                                                              2. The Digital Revolution and Information Goods

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                                                                              4. Two-Sided Markets and Platforms