Abstract:This experiment helps students to understand the importance of network externalities in technology adoption and the evolution of industries. Students observe the roles of lock-in and critical mass in technology adoption, understand how pricing affects adoption, and see welfare implications of network externalities. Given examples of network effects in firm and government action (e.g., the advanced television systems committee, antitrust litigation for the credit/debit card industry, and private strategy in new… Show more
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.