System Size, Lock-in and Network Effects for Patient Records
AbstractWe examine empirically whether the size of a firm using a network affects the scope of its network usage, and consequently network effects and lock-in within the network. We use the example of hospital information exchange. We find that hospitals in larger hospital systems are more likely to exchange electronic patient information only within their system and less likely to exchange patient information externally. We show that hospitals are also more likely to exchange information externally if others hospitals also do so. This implies that the disinclination of large hospital systems to exchange data externally harms overall levels of network use. Our results highlight that makers of technology policy designed to encourage the optimal use of networks should consider regulating the behavior of network users as well as technology vendors.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 09-07.
Length: 37 pages
Date of creation: Aug 2009
Date of revision: Sep 2009
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Web page: http://www.NETinst.org/
Technology Diffusion; Health-care IT; Network Externalities; Hospitals;
Find related papers by JEL classification:
- I1 - Health, Education, and Welfare - - Health
- K2 - Law and Economics - - Regulation and Business Law
- L5 - Industrial Organization - - Regulation and Industrial Policy
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-10 (All new papers)
- NEP-ICT-2010-01-10 (Information & Communication Technologies)
- NEP-NET-2010-01-10 (Network Economics)
- NEP-SOC-2010-01-10 (Social Norms & Social Capital)
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