Generalized Network Externality Function
Abstract
In this work, we focus on the development of mathematical modeling of network externality processes. The introduction of the generalized network externality function provides a unified source of a tool for developing and analyzing the planning, policy and performance of the network externality process and network goods/services in a systematic way. This leads to fulfill all existing network externality assumptions as special cases. We study its properties and applications. This study provides quantitative descriptions, parametric representations of attributes and sensitivity analysis of network externality processes. In particular, parametric variations characterize planning, policy and performance for network goods. Furthermore, by using the US banking asset and deposit time series data sets and statistical methods, the dynamic model of network externality of the US banking asset with respect to the normalized US banking deposit as the financial market share is developed to illustrate the concept of generalized network externality process.Download Info
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Article provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).
Volume (Year): 42 (2012)
Issue (Month): 3 (December)
Pages: 363-387
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Related research
Keywords: Network externality; S-shaped function; Sigmoid function;Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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