scholarly journals Network Effects in Alternative Fuel Adoption: Empirical Analysis of the Market for Ethanol

Author(s):  
Scott K. Shriver
2012 ◽  
Vol 12 (2) ◽  
pp. 1850257 ◽  
Author(s):  
Thierry Warin ◽  
Andrew Blakely

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.


2009 ◽  
Vol 46 (2) ◽  
pp. 135-149 ◽  
Author(s):  
Gerard J. Tellis ◽  
Eden Yin ◽  
Rakesh Niraj

Researchers disagree about the critical drivers of success in and efficiency of high-tech markets. On the one hand, some researchers assert that high-tech markets are efficient with best-quality brands being dominant. On the other hand, many scholars suspect that network effects lead to perverse markets in which the dominant brands do not have the best quality. The authors develop scenarios about the relative importance of these effects and the efficiency of markets. Empirical analysis of historical data on 19 categories shows that though both quality and network effects affect market share flows, in general markets are efficient. In particular, market share leadership changes often, switches in share leadership closely follow switches in quality leadership, and the best-quality brands, not the ones that are first to enter, dominate the market. Network effects enhance the positive effect of quality.


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