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Author:Riggins, F.
Kriebel, C.
Mukhopadhyay, T.
Title:The growth of interorganizational systems in the presence of network externalities
Journal:Management Science
1994 : AUG, VOL. 40:8, p. 984-998
Index terms:TELECOMMUNICATIONS INDUSTRY
NETWORKS
ELECTRONIC DATA PROCESSING
Language:eng
Abstract:The authors develop a model of network growth in the presence of network externalities for the case where a buyer initiates an interorganizational system with its suppliers. In their two-stage model, suppliers joining the network in the first stage can gain economic benefit from increased market share or higher price for the primary product. Suppliers encounter negative externalities since the economic benefit accruing to participating suppliers is less for increasingly larger networks.
SCIMA record nr: 126896
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