• 산업경영시스템학회지
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• 제41권2호
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• pp.159-166
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• 2018

The proliferation of information technologies made it possible to produce information products of different versions at much lower cost comparing to traditional physical products. Thus it is common for information product manufacturers to consider vertically differentiated product line for more profit through improved market coverage. Another salient characteristic of most information product is network externality. Existing researches dealing with vertical differentiation and network externality usually assumed oligopolistic market where vertically differentiated products are provided by competing companies, respectively. Moreover, they analyzed the essentially dynamic characteristic of network externality statically. In this study, different from the previous researches, the vertical differentiation strategy of a monopolistic company under network externality is dynamically analyzed. We used a two-period model to accommodate the dynamic feature of network externality. Based on the two-period model, the profit maximizing solutions are analyzed. The results showed that a monopolistic company has no incentive to differentiate products vertically when the network externality is absent. On the contrary, when the network externality exists, the monopolistic company can derive more profit by vertically differentiating the product line. It is also shown that, for more profit, the monopolistic company should keep the quality difference between the high quality product and the low quality product as greater as possible.

• 산업경영시스템학회지
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• 제40권1호
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• pp.105-113
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• 2017

Network externality can be defined as the effect that one user of a good or service has on the value of that product to other people. When a network externality is present, the value of a product or service is dependent on the number of others using it. There exist asymmetries in network externalities between the online and traditional offline marketing channels. Technological capabilities such as interactivity and real-time communications enable the creation of virtual communities. These user communities generate significant direct as well as indirect network externalities by creating added value through user ratings, reviews and feedback, which contributes to eliminate consumers' concern for buying products without the experience of 'touch and feel'. The offline channel offers much less scope for such community building, and consequently, almost no possibility for the creation of network externality. In this study, we analyze the effect of network externality on the competition between online and conventional offline marketing channels using game theory. To do this, we first set up a two-period game model to represent the competition between online and offline marketing channels under network externalities. Numerical analysis of the Nash equilibrium solutions of the game showed that the pricing strategies of online and offline channels heavily depend not only on the strength of network externality but on the relative efficiency of online channel. When the relative efficiency of online channel is high, the online channel can greatly benefit by the network externality. On the other hand, if the relative efficiency of online channel is low, the online channel may not benefit at all by the network externality.

• 한국경영과학회:학술대회논문집
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• 한국경영과학회 2003년도 추계학술대회 및 정기총회
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• pp.183-186
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• 2003

Customer profitability recognition is easier with CRM enabling technologies and the strategy of firing unprofitable customers prevails in the market. However, in the digital and Internet age, network externality is becoming more important. Therefore, the concern over firing unprofitable customers has increased. Our research is intended to develop strategic guidance for customer selection when firms implement CRM in the market with network externality.

• KDI Journal of Economic Policy
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• 제31권2호
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• pp.87-126
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• 2009

인터넷포털 산업에서 최종사용자시장으로부터 광고주시장으로 작용하는 간접 네트워크 외부성과 최종사용자시장 내의 직접 네트워크 외부성의 크기는 인터넷포털 기업 간 경쟁에 있어서 중요한 경쟁정책적 의미를 가진다. 본 연구는 국내 인터넷포털 산업에서 직 간접 네트워크 외부성의 실재와 크기, 인터넷포털 기업들의 시장력을 실증구조모형을 통해 분석하고 경쟁정책에의 시사점을 제시한다. 본 연구의 분석 결과는 산업 내에 이러한 직 간접 네트워크 외부성이 실재하며, 이로 인해 최종사용자시장 점유율과 광고주시장의 시장력 사이에 '레버리지' 효과가 존재함을 보여준다.

• KDI Journal of Economic Policy
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• 제34권2호
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• pp.17-40
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• 2012

본 논문은 불완전한 금융계약하에서 발생하는 자본투자의 외부성에 대하여 연구하였다. 계약이행의 불완전한 경우의 제약된 효율적 자원배분(constrained efficient allocation)의 문제를 풀었고, 완전 위험분담(full risk-sharing)이 가능하지 못한 경제상황에서는 자본투자가 양의 외부성을 갖는 것을 보였다. 경쟁균형에서 자본투자 한 단위의 증가는 경제주체의 파산가치(autarky value)를 증가시켜 경제 내에서 외부성을 발생시키는데, 이러한 외부성은 양의 자본소득과세에 대한 이론적 근거를 제시할 수 있으며, 정부는 이러한 외부성을 내생화시키기 위하여 양의 값의 선형자본세(linear capital tax rate)를 사용할 수 있다.

• Asia pacific journal of information systems
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• 제15권2호
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• pp.121-148
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• 2005

This study focuses on MRO e-Marketplace and attempts to research how companies select the structure of e-Marketplace governance and how it influences purchasing performance. Furthermore, a longitudinal study is conducted to analyze the dynamic relationship between variables in our research model. The research gives the following results. First, as the utilization level of e-Marketplace increases, the level of relational exchange between purchasing company and e-Marketplace increases. The increased utilization level enhances purchasing efficiency rather than reducing purchasing price. Secondly, as the level of relational exchange between purchasing companies and e-Marketplace increases, system integration increases, whereas supply externality decreases. Accordingly, system integration improves purchasing efficiency, whereas the low supply externality does not help lower purchasing price. Third, compared to the initial growth stage, the stable stage of e-Marketplace has the significantly increased level of relational exchange and purchasing efficiency through system integration, rather than the reduction of purchasing price by supply externality.

• 산업경영시스템학회지
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• 제44권1호
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• pp.37-44
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• 2021

The information products dramatically reduce the production costs of vertically differentiated products. Information products are also more likely to be affected by network externalities. Thus the proliferation of digital products is increasing the interests in network externality and vertical product differentiation. In step with this trend, the impact of network externalities on price competition in vertically differentiated markets has been continuously studied. Existing studies related to this topic have assumed that network externalities increase consumers' willingness to pay per unit quality. The results show that higher quality products are affected more by network externality. However, network externality is essentially a concept affected by the size of the consumer, not a concept associated with quality. In this work, unlike previous studies, we present a new market model that reflects the essential definition of network externality. Based on the proposed market model, we derive both simultaneous and sequential Nash equilibria and analyze them numerically. The main results obtained from the analysis can be summarized as follows. First, network externalities primarily increase the demand for low-quality products and have a secondary impact on the demand for high-quality products. Second, the larger the quality difference between products, the more profitable they are. It also has been shown that sequential pricing methods are more advantageous in terms of revenue than simultaneous pricing method.

• 경영과학
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• 제32권4호
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• pp.209-236
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• 2015

This study focuses on the network externality effect related to the platform supplementary services. This study designs the network externality of platform and suggests a supplementary service adoption model. Additionally, this study examines the moderating effect of demand forecasting for the platform. Using AMOS program, a structural equation modeling has been used to analyze the research model. The findings can be summarized as follows : First, we find out the structural relationship among the factors (usefulness, perceived value, purchase intention) affecting adoption of the supplementary services. Second, positive perception of platform flow can promote the platform interaction. Third, positive perception of present users based on platform can arouse friendly evaluation in the platform interaction. Fourth, loyalty to the platform brand can improve the perceived usefulness of supplementary services, but cannot lessen the resistance to supplementary service cost. In addition, the moderating effects of demand forecasting for the platform in the path leading from platform factors to supplementary service factors were identified. In conclusion, traditional brand strategy may be effective in platform marketing activities but the extent of performance in the strategy can appear to be quite different. Therefore, taking the relationship with network externality into consideration should be involved in the marketing strategy in platform.

• KDI Journal of Economic Policy
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• 제27권1호
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• pp.39-79
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• 2005

본 연구는 은행집중도 확대 등 독점적 은행구조의 비교우위 가능성을 검토하였다. 즉, 신용평가기관(Credit Bureau)의 정착, 신용정보의 거래활성화 등 금융제도가 선진화되면서 나타나는 정보의 외부효과 증대에 따라, 또한 경제발전단계에 따라 최적 은행구조가 어떻게 달라질 수 있는지를 분석하였다. 본 연구의 결과는 다음과 같다. 경제개발 초기단계인 저개발국가와 자본시장이 발달하고 금융제도가 선진화되면서 정보의 외부성이 높아진 선진국의 경우는 독점적 은행구조가 장기균형자본축적에 효과가 있었다. 이러한 결과는, 은행과 차입자 간의 비대칭적인 정보구조가 상존하는 가운데 경제 내의 신용리스크가 큰 경우 또는 정보의 외부효과가 높아 무임승차(free riding) 위협이 큰 경우에는 독점적인 은행구조가 바람직함을 시사한다. 본 연구는 최근 금융산업에서 발생하는 인수합병의 경제적 효과를 설명하는 새로운 분석방법을 제시하고 있으며, 우리나라 및 세계 각국의 인수합병 관련 규제완화의 이론적 근거를 제공할 수 있다.

• 한국정보시스템학회지:정보시스템연구
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• 제24권4호
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• pp.21-42
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• 2015

Purpose The high-technology market shows characteristics of a highly interdependent network market in both supply-side and demand-side, compared to other markets. Particularly, for convergence products, connectivity with related elements, as well as characteristics of innovation itself, is relatively important to the extent that they combine functions provided by several devices into a single device. Therefore, this study aims to identify whether network externality exists in value and adoption of a convergence product and discover a source of network externality, if any. Design/methodology/approach: Through a preceding research analysis and a literature review, 'social influence' and 'network size' have been drawn as direct network elements. On the other hand, general (comprehensive) concept compatibilities including 'intra-technology compatibility', 'inter-technology compatibility' and 'complementary-technology compatibility' are regarded as indirect network elements. Findings: Major findings are as followed;- First, it is shown that the factors influencing on perceived value of a convergence products are 'social influence' and 'network size' as the direct network elements and 'complementary-compatibility' among indirect network elements. Second, it is also found that 'intra-technology compatibility', 'inter-technology compatibility', 'complementary-compatibility' and 'perceived value' have significant effects on adoption of a convergence product. Particularly, it is known that 'complementary-compatibility' is an important source of network externality as it plays a decisive role in value judgment and has significant effects on perceived value. It is worthwhile to notice that this study comprehensively explains effects of network on high-tech products by structuring comparability as a multi-dimensional concept, as well as direct network elements.