Review paper
Network Externality: An Uncommon Tragedy
Abstract
Economists have defined ‘network externality’ and have examined putative inframarginal market failures associated with it. This paper distinguishes between network effects and network externalities, where the latter are market failures. The authors argue that while network effects are important, network externalities are theoretically fragile and empirically undocumented. Some network externalities are merely pecuniary. Network ownership or...
Paper Details
Title
Network Externality: An Uncommon Tragedy
Published Date
May 1, 1994
Volume
8
Issue
2
Pages
133 - 150
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