How to Survive in the Nehvork Economy? An Overview of the Hdeas of Prof. Carl Shapiro and Prof. Hal R. Varian

Abstract

In this text, Heidi Vandei Bauwliede reports on the reflections offered by Professor Hal Varian at the occasion of the third seminar, 2000-2001, on 'E-conomics of Trust' of the PwC Chair Value and Risk The new network economy differs in various respects from the old economy. Hence, some call for a new economic framework that helps us explain the new, information economy. Professors Carl Shapiro and Hal R Varian argue however that the phenomena of the network economy can be explained by existing, but less well-known economic principles This article lists those principles and discusses the implications for designing successful business strategies in the network economy.