The Economics of Network Industries

TLDR

Network industries span the Internet, e‑mail, telephony, hardware, software, media, and services such as banking, legal, and airlines, and the book discusses how network activity shapes firm interactions and consumer choices. The book introduces students and researchers to the latest developments in network economics, offering an overview and industry‑specific investigations. It presents the subject without calculus, ending each chapter with exercises and references, and explores specific industries through case studies. The text highlights how network activity alters strategic interactions among firms and influences consumer choices through social interaction.

Abstract

This book introduces upper-level undergraduates, graduate students, and researchers to the latest developments in network economics, one of the fastest-growing fields in all industrial organization. Network industries include the Internet, e-mail, telephony, computer hardware and software, music and video players, and service operations in the banking, legal, and airlines industries among many others. The work offers an overview of the subject matter as well as investigations about specific industries. It conveys the essential features of how strategic interactions between firms are affected by network activity, as well as covering social interaction and its influence on consumers' choices of products and services. Virtually no calculus is used in the text, and each chapter ends with a series of exercises and selected references. The text may be used for both one- and two-semester courses.