Nowadays networks are a central issue. They connect individuals, communities, firms and structure the workings of society as a whole. Especially, in knowledge-intensive industries firms can use networks to optimize resources, response markets rapidly, share costs and realize technique innovations more efficiently. This is so-called "new economy" by Puffert and its most significant feature is network externality. Network externality, also called scale of economy of demands, means that the individual benefit from, and consequently individual willingness to pay for, consumption of the good (service) is increasing in the number of people consuming the same good (service) or a compatible one.
More please visit:The Study of Product Differentiation and Compatibility Decisions of Firms in Network Economy_Latest Science Articles
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