Network effects, compatibility, and adoption of standards
This thesis introduces a structural econometric model of demand exhibiting direct network effects. The structural approach we follow allows us to identify the extent of network effects and compatibility between competing networks. To the best of our knowledge, this is the first model that facilitates the identification in the case of direct network effects. At the same time, it is the first attempt to assess the degree of compatibility in an econometric framework. The model is then applied to investigate demand for mobile telecommunications service and the link between adoptions of ISO 9000 standard and international trade. The estimation results allow us to formulate some interesting policy conclusions.
School:Humboldt-Universität zu Berlin
Source Type:Master's Thesis
Date of Publication:02/09/2005