General Network Effects and Welfare

Abstract. (In)direct network effects arise frequently in economic models but, for rea-sons of analytical tractability, are often assumed to be linear. Here, we examine the general non-linear case with two platforms. We establish the conditions characterising equilibria and show that welfare changes can be related in a simple, intuitive way to the degree of diminishing returns of the network effects function

Panama Canal Twenty-fifth anniversary 1914 - Aug. 15 -1939

Leonard Carpenter Panama Canal Collection. Photographs: Views of Panama and the Canal. [Box 1] from the Special Collections & Area Studies Department, George A. Smathers Libraries, University of Florida. Booklet dedication: Published under the direction of a committee appointed by Brigadier General Clarence S. Ridley, Governor of The Panama Canal, to arrange suitable ceremonies, as authorized in Public Resolution No.5, 76th Congress, approved March 28, 1939, to celebrate the twenty-fifth anniversary of the opening of the Panama Canal to commerce. Prepared by Rufus Hardy, Executive Department, The Panama Canal. (120 page document

Heidegger And Metaphysical Aesthetics

The aim of this paper is to bring to light some of the fundamental differences between Heidegger’s approach to art and the traditional approach, and to do so within the context of Heidegger’s project of what he calls “overcoming metaphysics”

Convention And Difference

The claim that music is language may be oft repeated, but it remains wholly unenlightening unless a sufficient explanation of one of these terms has already been given. On the face of it, music is entirely dissimilar to natural language, at least when conceived functionally, the one being categorised primarily as an aesthetic object, the other first and foremost as a means of communication

Is Google the next Microsoft? Competition, Welfare and Regulation in Internet Search

Internet search (or perhaps more accurately `web-search') has grown exponentially over the last decade at an even more rapid rate than the Internet itself. Starting from nothing in the 1990s, today search is a multi-billion dollar business. Search engine providers such as Google and Yahoo! have become household names, and the use of a search engine, like use of the Web, is now a part of everyday life. The rapid growth of online search and its growing centrality to the ecology of the Internet raise a variety of questions for economists to answer. Why is the search engine market so concentrated and will it evolve towards monopoly? What are the implications of this concentration for different `participants' (consumers, search engines, advertisers)? Does the fact that search engines act as `information gatekeepers', determining, in effect, what can be found on the web, mean that search deserves particularly close attention from policy-makers? This paper supplies empirical and theoretical material with which to examine many of these questions. In particular, we (a) show that the already large levels of concentration are likely to continue (b) identify the consequences, negative and positive, of this outcome (c) discuss the possible regulatory interventions that policy-makers could utilize to address these

The Control of Porting in Two-Sided Markets

A sizable literature has grown up in recent years focusing on two-sided markets in which economies of scale combined with complementarities between a platform and its associated ‘software’ or ‘services’ can generate indirect network effects (that is positive feedback between the number of consumers using that platform and the utility of an individual consumer). In this paper we introduce a model of ‘porting’ in such markets where porting denotes the conversion of ‘software’ or ‘services’ developed for one platform to run on another. Focusing on the case where a dominant platform exists we investigate the impact on equilibrium and the consequences for welfare of the ability to control porting. Specifically, we show that the welfare costs associated with the ‘control of porting’ may be more significant than those arising from pricing alone. This model and its associated results are of particular relevance because of the light they shed on debates about the motivations and effects of actions by a dominant platform owner. Recent examples of such debates include those about Microsoft’s behaviour both in relation to its operating system and its media player, Apple’s behaviour in relation to its DRM and iTunes platform, and Ebay’s use of the cyber-trespass doctrine to prevent access to its site