The Economics of Networks and Digital Platforms.

Format:

Book

Author/Creator:

Schneider, Henrique.

Language:

English

Physical Description:

1 online resource (134 pages)

Edition:

1st ed.

Place of Publication:

New York : Business Expert Press, 2025.

Summary:

Step into the future of business with this essential guide to the digital economy, where network effects and data-driven strategies are rewriting the rules of success for industry leaders. This textbook comprehensively explores network economics, focusing on digital platforms and ecosystems . It delves into the fundamental principles of network effects, where the value of a service increases as more people use it, and examines various pricing models essential in network-based businesses. Governance is another critical aspect, emphasizing the importance of establishing trust and reliable management practices within digital platforms. By the end of this book, you'll feel confident in your understanding of these complex topics. The book highlights the pivotal role of data in the network economy and keeps you abreast of the latest trends in the network and platform economy. It showcases how these trends, such as the increasing influence of data and network effects, are shaping the future and significantly influencing the present landscape. Key examples include industry giants like Google, Amazon, Facebook, Uber, and Airbnb, which are at the forefront of leveraging network effects and data to dominate their respective markets. This book lets you feel informed and ready to navigate these trends. Designed for students and professionals alike, this textbook combines theoretical foundations with practical insights, making it a valuable resource for understanding the dynamic world of digital platforms . Whether you're studying economics, business, or technology, this book provides the knowledge and tools needed to navigate and succeed in the evolving digital economy.

Contents:

Front cover

Half title

Title

Copyright

Description

Contents

Preface

CHAPTER 1 The Big Picture

Learning Agenda

1.1 Network Economics: An Old Unknown

1.2 Network, Platform, Ecosystem

1.3 Transaction Costs

The Charm of Associations

1.4 Investment, CAPEX, OPEX

1.5 Business Model

1.6 Pipeline and Network

1.7 Types of Network Business Models

1.8 From the Shift to the Manifesto

1.9 Controversies

1.10 Critical Assessment

Summary

Review Questions

First Series: Which Statements Are Correct? Which Are Not?

Second Series: Solve the Following Challenges

Third Series: Respond to the Following Questions and Solve the Mini-Case Studies

Commented Bibliography

CHAPTER 2 Network Effects

2.1 Beneft or Utility

2.2 Connections Are Benefts

2.3 Direct and Indirect Network Effects

2.4 Beneft Functions

2.5 A Nuanced Model

Takeaways: How Do Network Effects Work?

2.6 Network Governance

2.7 Chicken and Egg Problem

2.8 Equilibrium in Networks

2.9 Market Polarization

Example: Software Wars

2.10 Critical Assessment

CHAPTER 3 Pricing

3.1 Price

Cost, Beneft, and Price

3.2 Value Creation

A Platform for the Global Supply Chain

3.3 Price in Equilibrium Markets

3.4 Elasticity

Unique Tortilla Chips

3.5 Naive Pricing in Two-Sided Markets

3.6 Pricing With Network Effects

3.7 An Analytical Model

Step 1: Declaring Assumptions

Step 2: Defning Beneft Functions

Step 3: Determining the Value-Added Va by the Platform

Step 4: Naive Pricing.

Step 5: Pricing With Elasticity and Network Effects

Step 6: Subsidizing

Step 7: Concluding

3.8 Price Differentiation and Dynamic Prices

First-Degree Price Differentiation

Dynamic Pricing

Second-Degree Price Differentiation

Bundling and Unbundling Software

Third-Degree Price Differentiation

3.9 Practical Pricing Strategies

Free

Freemium

Pay-Per-Use

Long Tail

The Marketplace Model

3.10 Critical Assessment

Third series: Respond to the Following Questions and Solve the Mini-Case Studies

CHAPTER 4 Governance

4.1 Governance: Managing Connections

4.2 Elements of Governance: Overview

4.3 Elements of Governance: Explanation

Governance Structure

Resources and Documentation

Access and Control

Pricing Structure

4.4 Integration

4.5 Trust and Risk

4.6 Signaling and Sanctioning

Example: Signaling in Airbnb

4.7 Transferring Reputation

4.8 Strength of Networks

The Economic Perspective

The Cybernetic Perspective

4.9 Governance Strategies

Pricing the Platform

Key Considerations

Coping With Winner-Take-All Competition

Strategies to Address Winner-Take-All Dynamics

Dealing With the Threat of Envelopment

Counter-Envelopment Strategies

4.10 Critical Assessment

Glossary

References

About the Author

Index

OTHER TITLES IN THE ECONOMICS AND PUBLIC POLICY COLLECTION

Concise and Applied Business Books

Back cover.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781637427699

1637427697

OCLC:

1493861254