Will Abandoning DRM have a Boomerang Effect on Apple? - An Empirical Analysis of Lock-In and Network Effects

2009 ◽  
Keyword(s):  
Empirical Analysis ◽  
Network Effects ◽  
Boomerang Effect ◽  
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Interoperability – Technical or economic challenge?

2019 ◽  
Vol 61 (5-6) ◽  
pp. 243-252
Author(s):  
Lars Stegemann ◽  
Martin Gersch
Keyword(s):  
Network Effects ◽  
Cost Benefit ◽  
Individual Case ◽  
Economic Effects ◽  
Path Dependencies ◽  
Industry Standards ◽  
Indirect Network Effects ◽  
International Industry ◽  
The Individual ◽  
Lock In

Abstract Interoperability in healthcare is a long-standing and addressed phenomenon. In the literature, it is discussed as both the cause of an insufficiently perceived digitalization and in context with an inadequate IT-based integration in healthcare. In particular, technical and organizational aspects are highlighted from the perspective of the different involved actors to achieve sufficient interoperability. Depending on the individual case, various established international industry standards in healthcare (e. g. DICOM, HL7 or FHIR) promise simple adaptation and various application advantages. In addition to the technical view, this article assumes economic challenges as the main causes for the lack of interoperability not discussed in the forefront. The economic challenges were mentioned and sparingly discussed in few cases in the literature. This article aims to fill this gap by offering a first characterization of identified and discussed economic challenges in the literature with respect to the lack of interoperability in healthcare. Based on a systematic literature search, 14 of the original 330 articles can be identified as relevant, allowing a more economic perspective on interoperability. In this context, different economic effects will be described; this includes cost-benefit decisions by individual stakeholders under different kinds of uncertainty or balancing of known individual costs for interoperability against uncertain and skewed distributed benefits within an ecosystem. Furthermore, more sophisticated cost-benefit approaches regarding interoperability challenges can be identified, including cost-benefit ratios that shift over time, or lock-in effects resulting from CRM-motivated measures that turn (non)interoperability decisions into cost considerations for single actors. Also, self-reinforcing effects through path dependencies, including direct and indirect network effects, have an impact on single and linked interoperability decisions.

scholarly journals Unique Opportunities of Island States to Transition to a Low-Carbon Mobility System

2020 ◽  
Vol 12 (4) ◽  
pp. 1435 ◽  
Author(s):  
Zakia Soomauroo ◽  
Philipp Blechinger ◽  
Felix Creutzig
Keyword(s):  
Network Effects ◽  
Ghg Emissions ◽  
Climate Change Impacts ◽  
Spillover Effects ◽  
Extreme Weather Events ◽  
Small Scale ◽  
Low Carbon ◽  
Local Decision ◽  
Zero Carbon ◽  
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Small islands developing states (SIDS) contribute minuscule proportions to global greenhouse gas (GHG) emissions and energy consumption, but are highly exposed to climate change impacts, in particular to extreme weather events and sea-level rise. However, there is little research on potential decarbonization trajectories unique to SIDS. Here, we argue that insular topology, scale, and economy are distinctive characteristics of SIDS that facilitate overcoming carbon lock-in. We investigate these dimensions for the three islands of Barbados, Fiji, and Mauritius. We find that insular topologies and small scale offer an opportunity for both public transit corridors and rapid electrification of car fleets. The tourism sector enables local decision-makers and investors to experiment with shared mobility and to induce spillover effects by educating tourists about new mobility options. Limited network effects, and the particular economy thus enables to overcome carbon lock-in. We call for targeted investments into SIDS to transition insular mobility systems towards zero carbon in 2040. The decarbonization of SIDS is not only needed as a mitigation effort, but also as a strong signal to the global community underlining that a zero-carbon future is possible.

scholarly journals Using Experiments to Illustrate the Role of Network Externalities in Technology Adoption and Industry Evolution

2012 ◽  
Vol 6 (1) ◽  
Author(s):  
W. Parker Wheatley
Keyword(s):  
Technology Adoption ◽  
Network Effects ◽  
Network Externalities ◽  
Critical Mass ◽  
Industry Evolution ◽  
Government Action ◽  
Starting Point ◽  
Welfare Implications ◽  
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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 newer DVD technologies (HD DVD vs. Blue-Ray)), this experiment fits courses that wish to illustrate these ideas and provides a starting point for a more detailed study of network externalities

scholarly journals Choice or Mimetism in the Decision to Migrate? A European Illustration

2012 ◽  
Vol 12 (2) ◽  
pp. 1850257 ◽  
Author(s):  
Thierry Warin ◽  
Andrew Blakely
Keyword(s):  
Labor Market ◽  
Gravity Model ◽  
Empirical Analysis ◽  
Economic Activity ◽  
Network Effects ◽  
Herd Behavior ◽  
Market Conditions ◽  
Labor Market Conditions ◽  
Migration Flows ◽  
European Migration

This paper examines how herd behavior (mimetism) and network effects determine bilateral migration flows to thirteen EU-15 countries. Using an adapted gravity model controlling for economic activity, welfare progressivity, as well as geospatial and historic relationships, the results force us to question our explanations for migration flows. Herd behavior positively influences European migration flows, whereas network complementarities in the receiving country do not consistently predict, and may in some cases reduce, the likelihood of immigrant inflows. Moreover, economic activity, particularly labor market conditions, plays a lesser role in the migrants’ choice of destination than was previously thought. The introduction of herd behavior as a determinant of European Migration in our empirical analysis hopefully will change the paradigm for understanding migration.

scholarly journals Can the Liberal Order be Sustained? Nations, Network Effects, and the Erosion of Global Institutions

2021 ◽  
pp. 1
Author(s):  
Bryan Druzin
Keyword(s):  
International Organizations ◽  
Network Theory ◽  
English Language ◽  
Network Effects ◽  
Network Effect ◽  
Global Instability ◽  
Global Institutions ◽  
The Face ◽  
Media Platform ◽  
Lock In

A growing retreat from multilateralism is threatening to upend the institutions that underpin the liberal international order. This article applies network theory to this crisis in global governance, arguing that policymakers can strengthen these institutions by leveraging network effect pressures. Network effects arise when networks of actors—say language speakers or users of a social media platform—interact and the value one user derives from the network increases as other users join the network (e.g., the more people who speak your language, the more useful it is because there are more people with whom you can communicate). Crucially, network effect pressures produce what is called ‘lock-in’—a situation in which actors are unable to exit the network without incurring high costs and as a result become locked into the network. For example, because of their powerful network effect pressures, users of Facebook and the English language cannot easily exit these networks. International organizations such as the UN, the WTO, the IMF, etc., are networks of sovereign states that likewise produce network effect pressures. As such, intensifying their network effect pressure can lock countries more firmly into these institutions. To that end, this article proposes a suite of strategies policymakers may use to manipulate the network effect pressures generated by international organizations to strengthen these institutions and the multilateral treaties that establish them—an approach the article calls treaty hacking. The article offers a toolkit from which policymakers can draw to bolster the liberal order in the face of growing global instability and change.

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