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The process of the liberalisation of services of general economic interest (SGEI) in the EU adopted the universal service (US) regulatory model. The objectives of the process were to strengthen free competition and improve social welfare. SGEIs have the characteristic of networked services and, as such, generate network externalities, as considered by the theory of market failures. This paper analyses the potential of the US in its role as a remedy for network externalities. In the SGEI context, the large number of participants reinforces network externalities, while limiting coordination mechanisms between users. Based on the relevant literature, a theoretical debate arises around the contribution of universal service obligations (USOs) to social welfare. A microeconomic analysis shows that USOs modify consumers' utility functions by shifting from inefficient market equilibria to efficient equilibria, thereby improving social welfare. [ABSTRACT FROM AUTHOR]

The urban knowledge network in China has undergone in-depth development in recent decades, intimately connecting the position characteristics of cities in the knowledge network to their knowledge production performance. While existing research focuses predominantly on the unidirectional relationship between network position and the knowledge production of cities, there is a notable dearth of studies exploring the bidirectional relationship between the two constructs. By proposing a conceptual framework, this paper empirically examines the interplay between network position and knowledge production of cities through simultaneous equation models. The results revealed a mutually reinforcing relationship between network position and knowledge production, and this relationship exhibits heterogeneous characteristics and spillover effects. Specifically, cities in the periphery block and the central-western region benefit more from the effect of network position on knowledge production, while cities in the core block and the eastern region benefit more from the effect of knowledge production on network position. Moreover, the interactive effect between network position and knowledge production of cities is significantly affected by the network position characteristics and knowledge production performance of their neighboring cities in geographically adjacent regions and relationally adjacent regions. These findings enhance the understanding of urban network externalities and the connotations of the knowledge production function. [ABSTRACT FROM AUTHOR]

This paper investigates the optimal choice of firms' environmental R&D (ER&D) risk in a duopoly market with network externalities and emission tax. Considering consumers' expectations on the overall network size, we analyze two cases in our model: rational expectations and output commitments. The analysis shows that the ER&D risk increases with the intensity of network externalities and emission tax rate under both rational expectations and output commitments. We also find the ER&D risk is higher under output commitments than under rational expectations. Moreover, whether the private optimum is higher or lower than the social optimum depends on the relationship between the emission tax rate and the marginal environmental damage. Finally, the aforementioned conclusions remain unaffected by alterations in the manner in which competition is carried out, and the ER&D risk is higher under Bertrand competition than under Cournot competition. [ABSTRACT FROM AUTHOR]

Considering the large number of returns in online sales and the network externalities of e-platforms, we develop a decentralized model and a centralized model to explore the impacts of returns and network externalities on e-commerce supply chain (ECSC) decisions. We show that in the decentralized model, the service level, price, market demand, and ECSC members' profits increase with the network externality strength. However, the service level and price increase, while the market demand and ECSC members' profits decrease with the product return rate. The centralized model is the optimal operating mode when it is properly coordinated. We design the "commission and return cost-sharing" contract to optimize ECSC, in which the proportion of the e-platform's sharing of the return handling cost is exactly equal to the proportion of the system profit after coordination. Based on the decentralized model, we develop two extended models in which we endogenize the impacts of the service level and return rate on the network externality strength. Through comparisons between the extended and decentralized models, we show that high-quality service can improve ECSC's profitability, while a high return rate hurts its economic performance. [ABSTRACT FROM AUTHOR]

Background: Online healthcare platforms (OHPs) promote the accessibility of health services while integrating online and offline service delivery. Continuous adoption of these platforms can reduce the information asymmetry between patients and healthcare providers. However, existing study has rarely focused on how the network externalities of these platforms influence patients' continuous adoption. Expectation Confirmation Model (ECM) explains the continuous behavior after initial adoption and reveal the factors influencing satisfaction and continuous adoption intention. Few studies have integrated network externalities with the ECM to understand patients' continuous adoption of OHPs. Objective: This study aims to explore what factors affect the continuous adoption of OHPs based on an extension to the ECM and network externalities. We propose a comprehensive model for the continuous adoption of OHPs by patients with chronic diseases. We extend the conceptual framework by incorporating constructs related to perceived value, habits, and switching costs. Methods: This study utilized a web-based survey to collect data from participants in China. We selected a sample of individuals who had experience with OHPs using a random sampling method. This method ensured that participants was randomly chosen from a pool of patients without any regional bias. A total of 568 questionnaires were collected and 518 valid questionnaires were obtained. Structural equation modeling was applied to assess the relationships among the constructs. Hierarchical regression analysis was utilized to examine the moderating effects, while the mediating effects were investigated using the bootstrapping approach. Results: Direct network externality had significant positive impacts on the confirmation (β = 0.232, p < 0.001) and perceived value (β = 0.167, p < 0.010). Cross network externality had significant positive impacts on confirmation (β = 0.307, p < 0.001) and perceived value (β = 0.120, p < 0.05). Indirect network externality had significant positive impacts on confirmation (β = 0.169, p < 0.010) and perceived value (β = 0.270, p < 0.001). Confirmation had a significant positive impact on perceived value (β = 0.205, p < 0.001) and satisfaction (β = 0.508, p < 0.001). In addition, satisfaction had a significant positive impact on continuous adoption intention (β = 0.579, p < 0.001). Continuous adoption intention had a significant positive impact on continuous adoption behavior (β = 0.547, p < 0.001). Confirmation and perceived value significantly mediate the relationship between network externalities and satisfaction. Moreover, both confirmation and perceived value enhance continuous adoption intention by positively influencing satisfaction, which serves as a mediator. Additionally, confirmation directly influences satisfaction through the mediating role of perceived value. Habits and switching costs positively moderate the relationship between continuous adoption intention and behavior. Conclusions: This study contributes by expanding the incorporation of network externalities into the ECM. Results enrich the existing literature on the continuous adoption of professional online platforms. [ABSTRACT FROM AUTHOR]

This work aims to investigate the effects of co-determination in a game-theoretic setting by considering network externalities in consumption. The received theoretical literature, so far focused only on standard (non-network) industries, showed that co-determination might emerge as the sub-game perfect Nash equilibrium (SPNE) of a non-cooperative Cournot duopoly, but this outcome generates a prisoner's dilemma. The present research shows that (positive) network externalities may solve the prisoner's dilemma and let co-determination become a Pareto-efficient SPNE with homogeneous or heterogeneous products. In a network industry, co-determination becomes a Pareto-superior institution for society, as firms, consumers and workers are better off than under profit maximisation. These results hold for exogenous (homogeneous and heterogeneous) co-determination and endogenous co-determination. [ABSTRACT FROM AUTHOR]

Abstract Background Online healthcare platforms (OHPs) promote the accessibility of health services while integrating online and offline service delivery. Continuous adoption of these platforms can reduce the information asymmetry between patients and healthcare providers. However, existing study has rarely focused on how the network externalities of these platforms influence patients’ continuous adoption. Expectation Confirmation Model (ECM) explains the continuous behavior after initial adoption and reveal the factors influencing satisfaction and continuous adoption intention. Few studies have integrated network externalities with the ECM to understand patients’ continuous adoption of OHPs. Objective This study aims to explore what factors affect the continuous adoption of OHPs based on an extension to the ECM and network externalities. We propose a comprehensive model for the continuous adoption of OHPs by patients with chronic diseases. We extend the conceptual framework by incorporating constructs related to perceived value, habits, and switching costs. Methods This study utilized a web-based survey to collect data from participants in China. We selected a sample of individuals who had experience with OHPs using a random sampling method. This method ensured that participants was randomly chosen from a pool of patients without any regional bias. A total of 568 questionnaires were collected and 518 valid questionnaires were obtained. Structural equation modeling was applied to assess the relationships among the constructs. Hierarchical regression analysis was utilized to examine the moderating effects, while the mediating effects were investigated using the bootstrapping approach. Results Direct network externality had significant positive impacts on the confirmation (β = 0.232, p

Platform business models are upending the value proposition of the companies in traditional industries, such as healthcare, through competitively pricing value-added services and products. In this study, we consider a unique, but important, on-demand two-sided service platform: a monopolistic online healthcare platform, which not only provides medical services to patients by connecting them with doctors, but also sells medical products to patients. A crucial operational decision for the platform is to set up a pricing scheme to encourage enough doctors and patients to participate on the platform. We consider two common pricing schemes in this study: fixed and linear pricing, in an empirically-grounded optimisation model that considers medicine pricing decisions together with network externalities. Our results show that the fixed pricing scheme almost always dominates the linear pricing scheme by providing the platform with higher expected profit. Our results also reveal the strong interdependence between the optimal doctor service pricing decision and optimal medicine pricing decision. However, these decisions are often made independently by different functional units of a firm, which could cause suboptimal platform financial performance. These results indicate the importance of pricing products and services in an integrated manner for maximising the profit of a product/service platform. [ABSTRACT FROM AUTHOR]

Studies have shown that young consumers continue to be the target of digital marketing communications. They are also a source of revenues from online platforms that provide digital content. This research aimed to investigate whether young consumers' online brand trust and online brand loyalty would be significantly influenced by such independent variables as creators' digital content quality and network externalities. The study employed purposive sampling of 402 Thai undergraduate respondents who regularly view contents from their followed or subscribed channels. The research results were statistically analyzed using Structural Equation Modeling. The analysis revealed that creators' digital content quality (.745, p < .001) and network externalities (.152, p < .001) had a significant impact on online brand trust. Furthermore, online brand trust (.960, p < .001) also had a significant impact on online brand loyalty. The findings provide empirical evidence for social media and digital marketing communications. In addition, the findings reveal that enhancing trust is still crucial to branding. [ABSTRACT FROM AUTHOR]

In this paper, we aim to investigate the collusive stability in the presence of network externalities among firms with relative performance in the firm's objective functions. We demonstrate that collusive stability is increasing (decreasing) in the degree of relative performance, product substitutability and network effect when the network effect is sufficiently large (small). A competition agency might need to provide different guidance for anti-competitive regulation in the network industry. [ABSTRACT FROM AUTHOR]

This paper examines the role of technology ecosystems in shaping national economies and their impact on economic growth rates. It defines ecosystems as companies organizing multilateral markets across industries and investigates their association with economic growth using econometric analysis. Drawing from literature on multilateral markets and platform economics, the study finds a positive correlation between ecosystem presence and economic growth rates, highlighting their role in fostering innovation and increasing labor efficiency. However, challenges remain in measuring the full extent of ecosystem exports' cross-national effects. The findings emphasize the importance of ecosystem regulation and its potential to drive economic growth and national welfare. [ABSTRACT FROM AUTHOR]

Strategies of incumbent firms have received considerable attention in marketing and across business disciplines, but findings regarding performance (dis)advantages and innovativeness are mixed. Prior studies on supply-side sources (factors internal to the firm) of incumbent inertia disadvantages are more prevalent than those on demand-side factors, which relate to a firm's customers and may explain potential incumbent advantages. We introduce an integrated demand-side framework to incumbent inertia, recognizing how the supply- and demand-side factors interrelate through learning mechanisms. On the one hand, incumbent firms learn and develop various routines and assets that influence their product strategies, typically reflecting inertia and incremental innovation. At the same time, customers learn about products in the market, forming preferences that reflect switching costs and network externalities (demand-side factors). Although an incumbent can gain advantages from demand-side effects, this could accelerate the onset of supply-side disadvantages. We present a set of research propositions that specify critical effects, and examine implications for incumbent strategies. [ABSTRACT FROM AUTHOR]

The aim of this study is to examine the factors that impact merchants’ inclination to persist in utilizing e-wallets as a payment system in Malaysia. The study integrates the Unified Theory of Acceptance and Use of Technology (UTAUT) model with the Expectation Confirmation Model (ECM). Additionally, it includes three other constructs: awareness, online customer service, and network externalities. A total of 146 survey responses were collected and subsequently analyzed using PLS-SEM. The findings revealed that awareness and online customer service exert positive influences on performance expectancy and effort expectancy, respectively. It was determined that performance expectancy significantly and positively affects satisfaction. The study showed that effort expectancy, network externalities, and satisfaction positively affect merchants’ continuous intention to use the e-wallet system. Conversely, performance expectancy was not identified as a significant predictor of continuance usage intention of e-wallets.

Digital platform ecosystems feature interplatform competition. A potential strategy for a platform with market disadvantage is to make itself compatible with competitors to attract multihoming of developers. However, many questions remain unresolved regarding how a platform's compatibility strategy impacts developers' multihoming decisions and subsequent app performance. In this study, we use the context of web browser platforms (i.e., Firefox and Chrome) to investigate how the increase in the technological compatibility of a secondary platform (Firefox) influences developer multihoming from a primary dominant platform (Chrome). We theoretically consider how increased platform compatibility influences the trade-offs in developers' multihoming decisions and their subsequent app development choices. Based on this trade-off perspective, we posit and empirically investigate the effects of increased platform compatibility on developer multihoming, and the subsequent development choices and app performance resulting from multihoming. Our findings illustrate that developers with larger user bases on the primary platform are more willing to multihome than those with smaller bases, but increased platform compatibility reduces this gap and enables developers with smaller user bases to better embrace multihoming. Increased platform compatibility also encourages multihoming developers to develop exclusive apps for the secondary platform. Moreover, increased platform compatibility facilitates multihoming developers to leverage their primary-platform user bases to enhance their secondaryplatform app performance, and this effect is influenced by the development type (porting or exclusive development). Our study generates unique insights that add to the theoretical understanding of platform compatibility, multihoming, and platform competition. [ABSTRACT FROM AUTHOR]

The prominence of agglomeration externalities (AEs) and network externalities (NEs) in urban sustainable development has intensified in recent times, with advances in transportation infrastructure and information technology acting as key accelerators. Despite the scholarly attention they receive, the specific spillover effects that these externalities exert on green technology innovation (GTI) remain under-explored. In an effort to bridge this knowledge gap, the present study employs a spatial Durbin model to scrutinize, spanning a decade from 2011 to 2021, the impact and spatial spillover of AEs and NEs on GTI across 283 Chinese cities of prefecture level and above. The findings reveal the following: (1) AEs exert a U-shaped influence on GTI, initially inhibiting it, before ultimately fostering its growth. (2) NEs are found to consistently promote GTI. (3) The spatial spillover effects of AEs on GTI are significantly positive, while those from NEs are not statistically significant. (4) The influences of AEs and NEs on GTI exhibit marked regional variations. This study extends the research scope on the factors influencing GTI by examining the role of AEs and NEs, thereby aiming to offer valuable insights for enhancing the level of GTI. [ABSTRACT FROM AUTHOR]

Multi-agent cooperation, pooling innovative resources, helps to develop key technologies and major projects in enterprises. However, the multi-agent cooperation of enterprises makes the cooperative relationship unstable, and behaviours such as moral hazard, spillover of technology or information are more likely to occur, thereby increasing the risk of enterprises. In this research an enterprise R&D cooperative evolutionary game model is built to investigate the influence of Network externalities on enterprise R&D cooperation in innovation networks. Furthermore, the evolution of innovative network structure of game results is simulated by means of computer technology so that the effects of network externalities on corporation degree, agglomeration and network structure are analyzed. The results show that Network externalities led to a decrease of cooperated partners, a decline in cooperation degree and agglomeration of enterprises, and a shrinking enterprise R&D cooperation tendency. The influence of network externalities shows significant structural differences in the three types of enterprise networks: the degree of enterprise cooperation and agglomeration fluctuates greatly in the scale-free network, but slightly in the small-world network and the random network. [ABSTRACT FROM AUTHOR]

• A higher degree of network externalities enhances high-quality product market share, price, and profit while reducing those for low-quality products. • The crowding-out of high-quality products on low-quality products becomes more pronounced as network externalities increase. • A moderate reduction in the quality gap benefits social welfare while a marginal gap leads to a lose-lose situation for firms. This study examines the impact of network externalities on the market performance of vertically differentiated luxury products. Luxury consumption triggers vanity-driven utility, which decreases due to the snob effect as market share expands. By employing a duopoly model under price competition, we demonstrate that a higher degree of network externalities enhances high-quality product market share, price, and profit while reducing those for low-quality products. The crowding-out of high-quality products on low-quality products becomes more pronounced as network externalities increase. We analyze the effects of quality improvement on equilibrium outcomes, revealing that a moderate reduction in the quality gap benefits social welfare. In contrast, a marginal gap leads to a lose-lose situation for firms. Our study underscores the importance of retaining low-quality products and adopting quality promotion strategies for high-quality products. [ABSTRACT FROM AUTHOR]

In recent years, more and more wealth management platforms have adopted Internet wealth management (IWM) services to attract users. Due to the intensive competition and low switching costs, it is essential for platforms to enhance users' willingness to continue using IWM services. Comprehensively considering the role of network externalities and herding, this study identified the factors affecting users' continuous intention of IWM service. The research model was tested using survey data collected from 637 respondents concerning their perceptions of IWM services. The results indicate that network externalities (network size, perceived complementarity, network strength) have significant impact on herding and perceived value, thus affecting continuance intention. Furthermore, herding and perceived value have a greater impact on continuance intention of users with low financial literacy than that of users with high financial literacy. This study could benefit wealth management platforms and researchers seeking to improve the retention rates of IWM users. [ABSTRACT FROM AUTHOR]

The urban knowledge network in China has undergone in-depth development in recent decades, intimately connecting the position characteristics of cities in the knowledge network to their knowledge production performance. While existing research focuses predominantly on the unidirectional relationship between network position and the knowledge production of cities, there is a notable dearth of studies exploring the bidirectional relationship between the two constructs. By proposing a conceptual framework, this paper empirically examines the interplay between network position and knowledge production of cities through simultaneous equation models. The results revealed a mutually reinforcing relationship between network position and knowledge production, and this relationship exhibits heterogeneous characteristics and spillover effects. Specifically, cities in the periphery block and the central-western region benefit more from the effect of network position on knowledge production, while cities in the core block and the eastern region benefit more from the effect of knowledge production on network position. Moreover, the interactive effect between network position and knowledge production of cities is significantly affected by the network position characteristics and knowledge production performance of their neighboring cities in geographically adjacent regions and relationally adjacent regions. These findings enhance the understanding of urban network externalities and the connotations of the knowledge production function.

The process of the liberalisation of services of general economic interest (SGEI) in the EU adopted the universal service (US) regulatory model. The objectives of the process were to strengthen free competition and improve social welfare. SGEIs have the characteristic of networked services and, as such, generate network externalities, as considered by the theory of market failures. This paper analyses the potential of the US in its role as a remedy for network externalities. In the SGEI context, the large number of participants reinforces network externalities, while limiting coordination mechanisms between users. Based on the relevant literature, a theoretical debate arises around the contribution of universal service obligations (USOs) to social welfare. A microeconomic analysis shows that USOs modify consumers’ utility functions by shifting from inefficient market equilibria to efficient equilibria, thereby improving social welfare.

In most platform environments, the exclusive provision of premium content from leading creators (superstars) is used as a strategy to boost user participation and secure a competitive edge vis-à-vis rivals. In this article, we study the impact of superstar exclusive content provision on platform competition and complementors' homing decisions. Two competing platforms facilitate interactions between consumers and suppliers, of which the latter are identified by the superstar and a fringe of complementors (e.g., independent developers, amateurs). When platform competition is intense, more consumers become affiliated with the platform favored by superstar exclusivity. This mechanism is self-reinforcing as it generates an entry cascade of complementors, and some complementors single home on the favored platform. We find that cross-group externalities are key in shaping market outcomes. First, exclusivity benefits complementors and might make consumers better off when cross-group externalities are large enough. Second, contrary to conventional wisdom, vertical integration (platform-superstar) may make exclusivity less likely than vertical separation under reasonable conditions. Finally, we discuss implications for the strategies of platform owners, managers of superstars and complementors, and antitrust enforcers. This paper was accepted by Joshua Gans, business strategy. Funding: L. Madio gratefully acknowledges financial support from the Economic and Social Research Council [Grant ES/J500215/1], the UCLouvain "Move-in" Fellowship Programme, the European Research Council under the European Union's Horizon 2020 Research and Innovation Programme [Grant 670494], and the Unicredit & Universities Foscolo Europe Fellowship. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2023.4720. [ABSTRACT FROM AUTHOR]

In the presence of network externalities, we examine the endogenous delegation structure in an import-competing market with import tariff under Bertrand competition. We show that (i) with strong network externalities, choosing delegation for home and foreign firms is a dominant strategy, which implies that the managerial delegation for output expansion is socially desirable; (ii) with weak (intermediate) network externalities, home firm chooses delegation (no delegation) but foreign firm chooses no delegation (delegation) in equilibrium; Thus, delegation to expand output of home and foreign firms is a more profitable choice than no delegation if the strength of network externalities is sufficiently large. [ABSTRACT FROM AUTHOR]

This paper adopts a green managerial delegation model in a polluting network industry wherein consumers form fulfilled rational expectations of network externalities. We show that firms are consistently incentivized to undertake ECSR (environmental corporate social responsibility) under price competition, while positive network externalities can increase the strategic level of ECSR. We also show that product substitutability between network products can play an important role in determining a firm's strategic level of ECSR and resulting profits. Finally, ECSR is conducive to increasing environmental quality and social welfare in a high-polluting network industry. Therefore, the strategic adoption of ECSR in a network industry is Pareto-improving as environmental damage becomes serious. [ABSTRACT FROM AUTHOR]

This paper studies an infinite horizon oligopoly model in markets with network effects and segmented demands. In each period, three firms make compatibility decisions before competing in prices for a newly arrived consumer. The firm that made a sale in the last period provides a better product quality in terms of an installed base consumer, which can be shared with its rivals through compatibility. We show that compatibility can be used as an exclusionary device even though it intensifies short-run price competition when firms are sufficiently patient. Under certain conditions, this is the only stable prediction with respect to a dynamic analog of strong stability in network formation games (Dutta and Mutuswami in J Econ Theory 76:322–344, 1997). [ABSTRACT FROM AUTHOR]

Despite growing scholarly attention on the role of urban networks for understanding regional dynamics, there has been limited research examining the impact of cities' transportation network connections on regional market integration. This paper analyzes China's four major urban agglomerations: the Yangtze River Delta, the Pearl River Delta, Beijing-Tianjin-Hebei, and Chengdu-Chongqing. Applying a spatial Durbin model to cross-sectional datasets for 2019, we provide insight into the role of cities' transportation network connections in promoting regional market integration, considering both the potentially heterogeneous impact of network connections and the interplay between network and agglomeration externalities. Our results indicate that: (1) cities' transportation network connections have an inverted 'U'-shaped effect on regional market integration; (2) transportation network connections have spatial spillover effects; (3) the positive impact of transportation network connections on regional market integration becomes more pronounced as city size decreases; and (4) there are neither complementary nor substitution effects between network and agglomeration externalities. We reflect on the broader implications of our empirical findings for regional development strategies and discuss possible avenues for further research. [ABSTRACT FROM AUTHOR]

This paper develops a duopoly model for user-generated content (UGC) platforms, which compete for consumers and content producers in two-sided markets characterized by network externalities. Each platform has the option to invest in a content quality assurance (CQA) system and determine the level of advertising. Our model reveals that network effects are pivotal in shaping the platforms’ optimal strategies and user behavior, specifically in terms of single vs. multi-homing. We find that when network effects for producers are weak, consumers tend to engage in multi-homing while producers prefer single-homing. Conversely, strong network effects lead to the opposite behavior. Furthermore, our model demonstrates that user behavior and network effects dictate whether a platform is incentivized to incorporate advertisements and/or invest in CQA. Generally, weak network effects prompt a platform to invest in a CQA system, unless both consumers and producers engage in multi-homing. Our model’s results highlight the importance for platform companies to evaluate the extent of network effects on their platform in order to anticipate user behavior, which subsequently informs the optimal CQA and advertising strategy.

In this paper, we aim to investigate the collusive stability in the presence of network externalities among firms with relative performance in the firm’s objective functions. We demonstrate that collusive stability is increasing (decreasing) in the degree of relative performance, product substitutability and network effect when the network effect is sufficiently large (small). A competition agency might need to provide different guidance for anti-competitive regulation in the network industry.

One of the most popular technologies is the internet of things (IoT). It refers to the number of users and penetration in the industry (I-IoT) and consumer (C-IoT) sectors. The previous stud-ies indicated that the usage rate of the C-IoT is outperforming the I-IoT worldwide. However, the contrary indication occurred in Indonesia. Among developing countries, the spending level of IoT in Indonesia is significant, but the use level of the technology is less developed. This survey study purposed to predict what factors influence the behavior intention to use C-IoT. The researchers extended the unified theory of acceptance and use of technology (UTAUT) model by adopting the network externality aspects. Around 400 valid data were collected from urban communities in the six most populous provinces in the country. The scholars used the partial least squares structural equation modeling (PLS-SEM) method using SmartPLS 3.3 in the data analysis stage. The findings expressed that the number of users and social influence factors are not influential factors influencing behavior intention to use IoT. Besides that, the UTAUT model extension may also be one of the theoretical references for future similar studies. Practically, the findings may also be one of the considerations for the stakeholders of C-IoT implementation in Indonesia.

In light of the profound advancements in information and communication technologies ushering in the knowledge economy, the urban space is undergoing a transformation from the traditional “space of places” to the emerging “space of flows.” This shift poses questions about the influence of knowledge flows on urban economic centrality. This paper seeks to address this knowledge gap by introducing a theoretical framework that elucidates how knowledge contributes to urban economic centrality. Our analysis focuses on both intra-city knowledge stocks and inter-city knowledge flows. Empirical findings in China highlight that knowledge stocks based on R&D and education levels, along with knowledge flows, significantly and positively influence all four dimensions of centrality. In contrast, knowledge spatial agglomeration within the knowledge stocks exhibits a significant positive correlation solely with power centrality. Additionally, although the knowledge stock structures don't yield significant results in the diffusion centrality model, for agglomeration and power centralities, a combination of specialized knowledge and telecommunications enhances urban economic centrality, while face-to-face communication strengthens the positive impact of diverse knowledge on urban economic centrality. The results suggest implementing knowledge-based policies tailored to different nodes in the city network is expected to promote sustainable competitiveness in the urban system.

Research on Venture Capitalists' (VCs) industrial diversification is supplemented with the notion of diversification along an industry's value chain. VCs are hypothesized to create a portfolio of complementary investments along the value chain, accompanied by low geographic diversification. Further, VCs specializing in an industry with network externalities are predicted to devote relatively more investments to this industry, followed by an increased propensity for diversification along the value chain. This, subsequently, will result in less geographic diversification. The hypotheses are supported through a study on VCs in the US and Europe. Contributions to the literature on VCs, diversification, geographic agglomeration and network effects are discussed. [ABSTRACT FROM AUTHOR]

This paper provides a new explanation for the choice of commodity tax principle when introducing network externalities into the intra-industry trade model. First, regardless of the destination or origin principle, when the network externalities are strong (weak), the optimal commodity tax rate in the presence of network externality is positive (negative) and higher (lower) than that without network externality. Second, the interplay between network externalities and trade costs affects the difference in commodity tax rates, influencing the differences in firms' profits, consumer surplus, tax revenues, and social welfare. Third, if the origin principle's commodity tax rate is higher (lower) than the destination principle's, the origin principle's social welfare level is lower (higher) than the destination principle's. [ABSTRACT FROM AUTHOR]

This paper discusses the impact of network externalities on the green strategies of enterprises at each node of the supply chain. The existing related research mainly addresses the influence of factors such as government regulation, consumer behavior characteristics, and node enterprise behavior on green supply chain decision making. While these studies provide excellent ideas, the impact of network externalities on both green manufacturing and green marketing strategies is often disregarded. This paper uses evolutionary game theory to construct a utility function based on network externalities and consumer green preferences. The Stackelberg game is used to analyze the revenue function of supply chain members under different strategies, showing that under different strategies, network externalities and consumer green preferences have different effects on revenue in the supply chain. To understand the influence of network externalities on green supply chain strategy choices, the evolutionary game model is used. This model allows analyzing the evolutionary stable strategies of manufacturers' green manufacturing and retailers' green marketing. The mechanism underlying the influence of network externalities and consumer green preferences on green supply chain decision making is demonstrated. This helps to explain the green strategy decisions of upstream and downstream enterprises in the supply chain. [ABSTRACT FROM AUTHOR]

This paper develops a duopoly model for user-generated content (UGC) platforms, which compete for consumers and content producers in two-sided markets characterized by network externalities. Each platform has the option to invest in a content quality assurance (CQA) system and determine the level of advertising. Our model reveals that network effects are pivotal in shaping the platforms' optimal strategies and user behavior, specifically in terms of single vs. multi-homing. We find that when network effects for producers are weak, consumers tend to engage in multi-homing while producers prefer single-homing. Conversely, strong network effects lead to the opposite behavior. Furthermore, our model demonstrates that user behavior and network effects dictate whether a platform is incentivized to incorporate advertisements and/or invest in CQA. Generally, weak network effects prompt a platform to invest in a CQA system, unless both consumers and producers engage in multi-homing. Our model's results highlight the importance for platform companies to evaluate the extent of network effects on their platform in order to anticipate user behavior, which subsequently informs the optimal CQA and advertising strategy. [ABSTRACT FROM AUTHOR]

Online-to-offline food delivery (O2OFD) services have become popular worldwide, and consumers' O2OFD usage and sedentary behavior have increased during the COVID-19 pandemic. However, whether consumers will continue to use O2OFD in the post-pandemic era is uncertain, and the relationship between sedentary lifestyle and O2OFD usage is poorly understood to date. Therefore, this study aims to investigate consumers' continued intention to use O2OFD in the post-pandemic era and their subsequent use behavior, as well as to explore the roles of sedentary lifestyle. A research model based on the unified theory of acceptance and use of technology 2 (UTAUT2), integrating network externalities and including sedentary lifestyle, was proposed. A two-stage online survey was conducted in China, with 409 eligible responses used in the data analysis. The results indicate that habit, perceived network size, and perceived complementarity were the main predictors of continued intention, whereas habit and continued intention were the primary determinants of use behavior. Sedentary lifestyle was positively related to O2OFD use behavior and moderated the effects of habit and continued intention on use behavior. In addition to its theoretical contributions, this study has implications for public policies, marketing strategies, and consumer well-being.

Drawing from network externalities perspective in the Economics literature, this study investigates the antecedents of trust and users' continuance intention in the context of hybrid online travel platforms (HOTPs). Data were obtained by surveying 489 users of HOTPs in China. The empirical results based on the PLS-SEM model showed that indirect and direct network externalities positively influence functional quality and hedonic quality respectively. Furthermore, both functional quality and hedonic quality of HOTPs positively affect users' trust, which in turn positively affects users' continuance intention and negatively affects perceived risks. [ABSTRACT FROM AUTHOR]

In network industry under Cournot and Bertrand competition, we examine a model when owners of firms hire biased managers who have incorrect market demand. Contrast to previous studies, we show that (i) regardless of the strength of network externalities when consumers form the responsive and passive expectations, owners realize strategic advantage by hiring biased managers to be more aggressive under Cournot and Bertrand competition, (ii) firms prefer facing passive expectations for the weak network externalities and vice versa for the strong network exteranlities under Bertrand and Cournot competition, (iii) if the network size is sufficiently large, then the prisoner's dilemma that firms hire aggressive managers no longer exists under both competition modes. As with no delegation case, we obtain the different rankings of firms' profit depending on both network externalities and forming of expectations under Cournot and Bertrand competition. [ABSTRACT FROM AUTHOR]

Progress of hardware technologies and diffusion of computer knowledge enable consumers to crack software if they decide to use software illegally. This paper constructs a software market in which consumers are horizontally differentiated in accordance with social norms of copyright protection to examine the monopolistic producer's software protection behaviors with considering partial compatibility between genuine and cracked software as well as utility loss from using cracked software. Our research presents the following results. First, when network externalities are weak, the monopolist would set a degree of protection which induces existence of software cracking to enhance consumers' willingness to pay for genuine software by improving network benefits. Conversely, if network externalities are sufficiently strong, then software producer would set a degree of protection which stop software cracking completely. This implies that stopping software cracking is not possible without network effects. Second, if utility loss from using cracked software is severe (mild), then strengthening (weakening) network externalities or lowering (raising) compatibility may reduce the number of consumers using cracked software and increase software producer's profits consequently. Finally, we show that the monopolistic producer tends to over-protect software when genuine and cracked software are highly compatible or network externalities are relatively weak which results in inadequate consumers using cracked software for social optimum. [ABSTRACT FROM AUTHOR]

This paper analyzes the effect of network externalities on firms' timing of new technology adoption in a network industry. In a pre-commitment game under Cournot competition, network effects tend to accelerate the timing of the leader and the follower regarding their adoption dates: under the rational expectations hypothesis and also under the firms' output commitment. However, while an increase in network effects tends to reduce the discrepancy between the optimal social timing of the new technology adoption and the market-driven time of adoption in the rational expectations model, the opposite occurs under the output commitment game. [ABSTRACT FROM AUTHOR]

This paper considers the collusive stability of downstream competition in a vertical market with network externalities and cost asymmetry. A dynamic collusion game is constructed, and backward induction is employed to solve the subgame perfect Nash equilibrium. We show that larger network externalities lead to less collusive incentive for an inefficient firm, while for an efficient firm, this depends on the efficiency gap. An increase in network externalities will destabilize the downstream collusion when the cost asymmetry is large and network externalities are relatively weak. [ABSTRACT FROM AUTHOR]

Recently, mobile apps are rapidly emerging as an important information instrument, with the potential to boost convenience and efficiency in everyday life. The adoption of mobile apps can exert a positive influence on individuals, but also lead to adverse perceptions in different ways. The crucial issue arising is what motivates people's discontinued use of such services. Furthermore, the roles of communication overload and privacy invasion between network externalities and discontinued use intentions have not been thoroughly examined. The primary objective of this article is to investigate if negative network externalities may result in privacy invasion, communication overload and discontinued intentions, and how the underlying mechanism operates. This current research collected and evaluated data from 696 mobile app users utilizing the structural equation model (SEM) technique. The findings demonstrate that perceived critical mass and perceived complementarity positively affect the privacy invasion of mobile app users. Particularly, it was discovered that privacy invasion and communication overload mediate the association between network externalities and mobile app discontinued use intentions. This article may not only enrich the ongoing contemporary critical discussion on new information technology usage, but also offer significant theoretical and practical implications for mobile app researchers and practitioners. [ABSTRACT FROM AUTHOR]