The Network(ed) Economy - The Nature, Adoption, and Diffusion of Communication Standards
This book addresses the economic impact of communication standards that experience
network effects. Communication standards, when compared to other public goods,
typically ex-perience different diffusion and adoption patterns due to network
properties. This work investigates diffusion dynamics and adoption behaviors
of utility-maximizing agents with goods that experience network effects, and
offers an explanation of diffusion paths and dynamics in emerging communication
standards networks.
Combining theories of diffusion and network effects, a new goods classification model is presented to explore the dissemination of IT and e-business standards within an empirical field of study. The study findings are used to design two applications that support and im-prove firms’ electronic interlaced communication through automation and standardization effects.
The author then engages a grounded theory approach to understand how network effects drive the diffusion of communication standards. The model is implemented as a simulation to show the dynamic interplay between direct and indirect network effects during the diffusion process. As a starting point, the model also addresses critical mass and life cycle issues, as well as related utility changes in communication standards. The author concludes by detailing the connections between the new model and existing literature on network effects.
“Roman Beck breaks new ground in explaining the role
of communication standards in the creation of positive network effects that
have become central to the knowledge economy. This work is required reading
for those interested in the mechanics and implications of adoption and diffusion
of communication standards.”
John Leslie King, Dean and Professor, School of Information, University of Michigan, USA
“This book is a must-read for and belongs into the personal library
of all those, i.e. academicians as well as practitioners and policy makers,
who strive to shape our new digital world by harnessing information and information
technology.”
Rolf T. Wigand, Maulden-Entergy Chair and Distinguished Professor of Information Science and Management, Department of Information Science, CyberCollege, University of Arkansas at Little Rock, USA