The third report in our series dealing with networks, platforms, markets and the economics of order (pdf, 48 pages, including a six-page summary of conclusions). Details below, with a link to a downloadable pdf table of contents.
$4,999.00 USDOWNLOAD TABLE OF CONTENTS (PDF)
In this report, we build on the analysis and findings of our first two reports in this series. The focus of those reports was the nature of networks — i.e., the mechanics of their demand, their essential output and source of value and how they differed from other goods and from platforms. Our focus in this third report will be factors that govern the operation of networks and, in particular, their size and their success as networks.
As the title implies, the third report entails a unique and thorough exploration of (a) the dynamics of network quality or value and its relationship to network size and network price, (b) the concept of network stability, and (c) the factors that determine stability or instability. As part of our comprehensive analysis of stability, we introduce a clear but powerful model of network formation and relate notions of emergence to network formation and stability. We apply the framework to timely issues regarding potential bias, non-neutrality or content management in social networks. Finally, as with our two previous reports, we deal with a few misconceptions common in mainstream treatments of networks that have strategic, regulatory and antitrust implications.
The New Economics of Order