A carregar...
Publicação
Network Consumption Externalities: The Case of Portuguese Telex Service
Autores
Orientador(es)
Resumo(s)
We attempt to evaluate the magnitude of network externalities in Portuguese telex service. Our estimates are based on two equations, a consumption equation and an access equation. The results suggest that network externalities are significant. For average sample values, a 10% increase in network size implies a 1.6% increase in average consumption, and an increase in the equilibrium number of subscribers of 0.7% in the short-run and 15.9% in the long-run. These elasticities are greater the smaller the values of average consumption or network size are. We discuss some implications of these results for optimal pricing in the contact of network externalities and relate them to the literature on the so-called "critical mass" and "catastrophe" models of adoption of innovations.
Descrição
Palavras-chave
Network externalities Telecommunications
Contexto Educativo
Citação
Cabral, Luís M. B., Network Consumption Externalities: The Case of Portuguese Telex Service (December, 1989). FEUNL Working Paper Series No. 135