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THE ECONOMICS OF NETWORKS: A SURVEY OF THE EMPIRICAL LITERATURE
Abstract
AbstractNetwork effects, the increase in value of consuming a product if many other consumers use the same product, are a feature of many markets and in particular of many high‐technology products. This paper surveys the burgeoning empirical literature that has developed especially during the last years. After theoretical work dominated the earlier years of research in this area, newer research has combined theoretical models with empirical studies and applied work with direct implications for public policy, marketing and company strategies. Furthermore, insights from the study of social networks have been applied to analyse how consumers interact with each other. The paper argues that a closer analysis of the network structure of consumer interaction promises fruitful future research avenues and advances in our understanding of how network effects operate.
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“Economides (1996) and Birke (2009), focusing on Information and Communication Technologies, show that as more people adopt a network technology, its performance improves (Birke, 2009;Economides, 1996).”
From Deepfakes, Democracy, and the Ethics of Synthetic Media: A Synthesis of the SOLARIS Project (2026) · cites this paper as Birke, 2009
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Cited by
Sorted by citations
Deepfakes, Democracy, and the Ethics of Synthetic Media: A Synthesis of the SOLARIS Project
(2026) · University of Maribor Press · doi:10.18690/um.feri.2.2026
Metadata
- Authors
- Birke, D.
- Affiliations
- University of Nottingham (GB)
- Corresponding author
- Birke, Daniel
- Venue
- Journal of Economic Surveys
- Publisher
- Wiley
- Published
- 2009-08-06
- Volume
- 23
- Issue
- 4
- Pages
- 762-793
- ISSN
- 0950-0804 (ISSN-L)
- 1467-6419
- OpenAlex
- W3122511565
- Cited by
- 113
- References
- 0
- Citations by year
- 2026: 6 · 2025: 9 · 2024: 3 · 2023: 1 · 2022: 7 · 2021: 3 · 2020: 4 · 2019: 20 · 2018: 7 · 2017: 5 · 2016: 7 · 2015: 10 · 2014: 4 · 2013: 6 · 2012: 5
- FWCI
- 20.15
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Economic Surveys (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Innovation Diffusion and Forecasting
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategy and Innovation
- Keywords
- network effects, network economics, high-tech products, consumer interaction, social networks, public policy, marketing strategy, business strategy
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- CoChat. (2026). Citation check: THE ECONOMICS OF NETWORKS: A SURVEY OF THE EMPIRICAL LITERATURE. https://app.cochat.ai/papers/10.1111/j.1467-6419.2009.00578.x
- The paper
- Birke, D. (2009). THE ECONOMICS OF NETWORKS: A SURVEY OF THE EMPIRICAL LITERATURE. Journal of Economic Surveys. https://doi.org/10.1111/j.1467-6419.2009.00578.x