scholarly journals Unobserved Preferences and Dynamic Platform Pricing under Positive Network Externality

2020 ◽  
Author(s):  
Hannu Huuki ◽  
Rauli Svento
Keyword(s):  
Network Externality ◽  
Unobserved Preferences

scholarly journals Unobserved preferences and dynamic platform pricing under positive network externality

2020 ◽  
Author(s):  
Hannu Huuki ◽  
Rauli Svento
Keyword(s):  
Electricity Market ◽  
Rational Expectations ◽  
Participation Rate ◽  
Network Externality ◽  
Management Service ◽  
Market Demand ◽  
Customer Base ◽  
Unobserved Preferences ◽  
Service Application ◽  
Positive Direct

AbstractWe study the dynamic optimization of platform pricing in industries with positive direct network externalities. The utility of the network for the consumer is modeled as a function of three components. Platform price and participation rate affect the consumer’s decision to join the platform. The platform operator is assumed to know the consumer’s sensitivities with respect to these components. In addition, the consumer’s utility is a function of other attributes, such as network privacy policies and environmental effects of the service. We assume that the distribution of these unobserved preferences in the potential customer base is known to the platform operator. We show analytically how the unobserved preferences affect the dynamic platform price design. Both static and rational expectations with respect to the platform participation are presented. We simulate an electricity market demand side management service application and show that the platform operator sets low prices in the launch phase. The platform operator can set higher launching prices if it can affect customers’ preferences, expectations or adjustment friction.

scholarly journals Examining Protection Motivation and Network Externality Perspective Regarding the Continued Intention to Use M-Health Apps

2021 ◽  
Vol 18 (11) ◽  
pp. 5684
Author(s):  
Yumei Luo ◽  
Guiping Wang ◽  
Yuwei Li ◽  
Qiongwei Ye
Keyword(s):  
Self Efficacy ◽  
Network Externalities ◽  
Network Externality ◽  
Intention To Use ◽  
Protection Motivation ◽  
Direct Impact ◽  
Perceived Vulnerability ◽  
Response Efficacy ◽  
Health Apps ◽  
Direct Network

M-health apps have developed rapidly and are widely accepted, but users’ continued intention to use m-health apps has not been fully explored. This study was designed to obtain a better understanding of users’ continued intention to use m-health apps. We developed a theoretical model by incorporating the protection motivation theory and network externalities and conducted an empirical study of a 368-respondent sample. The results showed that: (1) perceived vulnerability has a direct impact on users’ self-efficacy and response efficacy; (2) self-efficacy and response efficacy have a direct impact on users’ attitudes and continued intention; (3) network externalities affect users’ attitudes and continued intention, among which direct network externalities have an indirect impact on users’ continued intention through attitude; and (4) the impacts of self-efficacy, response efficacy, and indirect network externalities on continued intention are partially meditated by attitudes.

Welfare-improving vertical separation with network externality

2017 ◽  
Vol 151 ◽  
pp. 115-118 ◽  
Author(s):  
Kangsik Choi ◽  
DongJoon Lee
Keyword(s):  
Network Externality ◽  
Vertical Separation

The Effect of Flow on Users’ Social Shopping Intention

2022 ◽  
Vol 14 (1) ◽  
pp. 0-0
Keyword(s):  
Social Support ◽  
Emotional Support ◽  
Network Externality ◽  
Mobile Technologies ◽  
Flow Experience ◽  
Social Commerce ◽  
Shopping Behaviour ◽  
Social Shopping

The application of mobile technologies such as 4G has triggered social commerce development. However, due to the perceived uncertainty and risk, users may obtain a poor experience when conducting social shopping. Integrating both perspectives of social support and network externality, this research examined users’ flow experience associated with social shopping. The results indicated that both emotional support and network externality affect flow, which in turn affects identification and social shopping intention. The results imply that companies need to create a supportive climate and utilize network externality to improve users’ experience and facilitate their shopping behaviour.

scholarly journals Fraud, Economic versus Social-Psychological Losses, and Sustainable E-Auction

2018 ◽  
Vol 10 (9) ◽  
pp. 3130
Author(s):  
Xiaobing Zhang ◽  
Fu-Sheng Tsai ◽  
Chih-Chen Lin ◽  
Ya-Fang Cheng ◽  
Kun-Hwa Lu
Keyword(s):  
Risk Management ◽  
Network Externality ◽  
Economic Losses ◽  
The Internet ◽  
Knowledge Gap ◽  
Social Psychological ◽  
Multiple Dimensions ◽  
Equal Importance ◽  
Paper Form ◽  
Practical Implications

As compared to the economic losses, social and psychological losses are of equal importance in discussing the losses when encountering fraud. Taking advantage of a perspective paper form (i.e., free writing style with a mix of description, analysis, and comments) with in-depth discussions and well-developed propositions, we combine considerations from the knowledge gap, platform quality, and risk management to discuss the comparative seriousness of different fraud-caused losses. The conceptual model mainly articulates on a series of relationships among different degrees of knowledge gap, platform quality, and risk management in predicting the various combinative losses in the economic, social, and psychological aspects. Propositions follow. First, when the knowledge gap is higher, the economic losses of being cheated on the internet will be higher, while lower in social and psychological losses. Second, when perceived platform quality is higher, the economic losses of being cheated on the internet will be lower, while higher in social and psychological losses. Third, when platform risk management is better, all aspects of being cheated on the internet will be lower. Based on the assumption of network externality, we also argue that the multiple dimensions of fraud-caused losses may damage e-auction sustainability. Theoretical and practical implications will be discussed.

scholarly journals The impacts of pre-apprenticeship training for young people

2019 ◽  
Vol 4 (3) ◽  
Author(s):  
Richard Dorsett ◽  
Lucy Stokes
Keyword(s):  
Young People ◽  
Positive Impact ◽  
Youth Unemployment ◽  
Apprenticeship Training ◽  
Variable Approach ◽  
Average Impact ◽  
Unobserved Preferences ◽  
The Uk ◽  
The Impact ◽  
Instrumental Variable Approach

Apprenticeships are the key means by which the UK government aims to build skills and tackle the problem of youth unemployment. However, not all young people are able to secure an apprenticeship. Traineeships, a voluntary six-month programme of work placements and work preparation training, were introduced in England in 2013 to help equip young people with the skills and experience required to secure an apprenticeship or employment. The analysis in this paper uses linked administrative data on the population of trainees and a comparison sample of non-trainees to evaluate the impact of the programme on employment and apprenticeships. It uses a local instrumental variable approach, which allows selection into a traineeship to be influenced by unobserved preferences and for impacts to vary according to these preferences. The heterogeneous impacts can be aggregated to form an estimate of the average impact of treatment for all participants. The results show no overall impact on employment for younger trainees (16-18 year-olds) but an across-the-board positive impact on the probability of becoming an apprentice. For older trainees (19-23 year-olds), no significant impact on either employment or apprenticeships is evident among participants as a whole but the results suggest that, for those more resistant to participating, traineeships may actually reduce the probability of becoming an apprentice. These results confirm the effectiveness of traineeships as a means of facilitating apprenticeships among younger people. As such, they support the policy target of achieving 3 million apprenticeships by 2020.

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