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Once scaled, online platforms reconfigure value to remain competitive. Reconfiguration in online platforms may take a different form than in pipelines, as online platforms are intermediaries that generate network effects among the sides they connect. They also face stiff competition from other spheres due to lower barriers to entry. Why and how do online platforms reconfigure value? By examining 13 Indian online platforms that have achieved a certain level of success (such as tipped markets, investor confidence, or profitability), this article offers four strategies for reconfiguring online platforms: enhance interactions, enhance capabilities, offer new services, and nurture new transactions. [ABSTRACT FROM AUTHOR]

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The cooperation between two-sided platforms and social media platforms has become an emerging business model, with social platforms utilizing their extensive reach to attract fresh traffic to the two-sided platforms. However, with the expansion of the user base on these platforms, there is a potential for crowding out effects among users with similar interests. Meanwhile, determining whether the promotion on social platforms can generate profits for two-sided platform apps poses a significant challenge. To address this deficiency, a model is proposed to investigate the cooperative relationship between two-sided platforms and social platform under different user attribution scenarios. We utilize the Hotelling framework to analyze the competition between two-sided platforms in scenarios where neither platform cooperates with social media, and one platform does. Our analysis aims to survey whether such cooperation leads to increased profits or higher prices for the platform. The results indicate that: (1) When users are single-homing, same-side crowding-out has a stimulating effect on platform profits and prices. In contrast, cross-side network effects have a reverse effect. (2) Basic utility and cross-side network effects promote multi-homing behavior. When users on both sides are multi-homing, cooperation will result in a higher price for both two-sided platforms. (3) A two-sided platform that does not cooperate with social media is not necessarily at a significant disadvantage. If the cross-side network effects are large enough, such a platform can still gain an advantage. (4) A cooperating two-sided platform should strive to attract more traffic through the promotion of a social media platform, which can be beneficial to both competing two-sided platforms. Our findings provide useful managerial insights into cooperation strategies between two-sided platforms and social media platforms. [ABSTRACT FROM AUTHOR]

Peer-to-peer (P2P) lending has attracted scholarly attention because of its economic significance and potential to democratize access to finance. However, P2P lending platforms face many challenges and failures that we need to understand more clearly. We build a computational model to study how borrower default affects P2P platform lending. We show that borrower default disrupts the P2P network formation process and undermines platform stability. Moreover, we find that defaults increase the inequality in accessing funding and provide a rationale for using curation rules, widely used in P2P platforms, in contrast to P2P insurance, which fosters cascading defaults. We also address a new trend in P2P lending platforms in which large companies (institutional investors) play an increasingly important role. We find that the presence of large companies creates a denser network (more loans) but generates a trade-off between making the platform more resilient to cascading defaults and more dependent on specific players. Overall, we explain how borrower defaults affect platform stability and what makes a platform vulnerable, threatening its survival. We discuss research and managerial insights into platform stability and the economic effect of P2P lending platforms. [ABSTRACT FROM AUTHOR]

We consider dynamic competition between two platform‐based products that exhibit two‐sided network effects, such as game consoles and intelligent hardware. Firms compete in terms of pricing and Research & Development investment, which are driven by consumers' marginal utility of quality, indirect network effects, and the differentiation between consumers' preference for the products. We find that with a small marginal utility of consumers, the equilibrium investment of one firm increases first and decreases later with its product quality but is not obviously sensitive to the rival's. In contrast, with a large marginal utility, if the quality of the two products is comparable, the equilibrium investment increases substantially. However, if one product pulls ahead, the other firm will stop investing. Besides, we find that when the intrinsic value and the network value coexist, the market becomes more concentrated, even when consumers' marginal utility is small. The market concentration increases in both the consumers' marginal utility and the indirect network effect but decreases in the degree of differentiation between consumers' preference toward the two products. Interestingly, we show that differentiation plays an important role in shaping the market structure only when the network effect is weak. Counterintuitively, we show that the differentiation corrodes firms' total profits, which demonstrates that less fierce competition resulting from low substitution leads to a lower profit. Additionally, we reveal that dynamic interaction between quality and installed base motivates firms to improve from a low quality, the first‐mover advantage does not ensure market dominance. [ABSTRACT FROM AUTHOR]

Because a hospital is an interconnected, interdependent network of care units, allocating resources—beds, nurses, and improvement initiatives—to one unit to reduce its congestion may have spillover effects on other units. If such congestion spillover is substantial, ignoring it may lead to unintended consequences and missed opportunities. We use data collected over five years from a hospital with 16 inpatient units to empirically examine whether and how much congestion propagates through the network of inpatient units. Our estimation result suggests that the magnitude of the congestion spillover is indeed substantial in our study hospital. For example, increasing one inpatient unit's utilization by 10 percentage points today can increase its neighboring inpatient unit's utilization by up to 4.33 percentage points tomorrow. Using counterfactual analyses, we estimate the effect of adding a bed to each unit. We find that due to congestion spillover, adding one bed to the bottleneck unit can free up 4.14 beds in the hospital, which translates to 383.53 more hospital visits per year or a 3% increase in hospital throughput. This effect is about three times bigger in magnitude compared with what one can achieve by naively choosing which unit to add a bed to. Hospitals and other manufacturing and service systems with complex interdependence across resources can use our empirical framework to examine the spillover effect of resources on performance metrics and leverage such understanding to effectively improve their operations. This paper was accepted by Vishal Gaur, operations management. Funding: This work was supported by the Creative-Pioneering Researchers Program through Seoul National University. Supplemental Material: The data files and online appendices are available at https://doi.org/10.1287/mnsc.2023.4887. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explore the advantage of foreignness in a digital world. Design/methodology/approach: Usage data for 251 days of 32 travel mobile applications installed on a major mobile phone brand in China are examined. Results support the author's arguments. Findings: Foreign mobile apps enjoy higher daily usage time than local apps. Next, the author consider how foreign apps can maximize their advantage, that is, increase daily usage time. The author argue that a multinational enterprise (MNE) can digitally enter a country that has numerous immigrants from its home country because of the high number of potential long tail users. A high level of diversity of international experience of MNEs increases the ability to understand and satisfy the specific needs of long tail users, thereby increasing daily usage time of foreign mobile apps. To maximize the advantage of foreignness in a digital world, MNEs can also carefully select business models that do not heavily rely on network effect, given the difficulty of generating network effect by long tail users. Originality/value: Previous studies focus on the liability of foreignness or outsidership that MNEs encounter in the digital world, whereas this study argues that foreignness brings certain benefits, such as the capability to satisfy the specific needs of long tail users. [ABSTRACT FROM AUTHOR]

The network effect is an important factor for the inertia and path dependence in the international monetary system. In this paper, we explore its influence, both theoretically and empirically: (a) by extending the standard monetary search model to a three‐country three‐currency model with multiple transitions to clarify the network effect on currency choices; (b) by showing empirically that the network effect is positive, statistically significant, and quantitatively comparable with other factors, such as trade share. The empirical results hold both for major international currencies and emerging currencies, such as RMB, and for various estimation specifications and subsamples. [ABSTRACT FROM AUTHOR]

Introduction. In the present-day environment, development of the market of full-cycle construction companies needs a thorough research on key trends governing its operation and improvement. Due to the gradual digitalization of the construction industry, traditional approaches to its analysis, based on geographical and product boundaries in terms of the number, the floor area and the volume of constructed buildings, will become ineffective because they disregard alternative criteria characterizing digital construction markets. Against this background, the projected development of the market of full-cycle construction companies is misleading. The evolution of methods for analyzing the market of full-cycle construction companies is characterized by a shift towards the use of digital ecosystems by developers willing to interact with market players. Hence, big data and data access modes will become increasingly important in the construction industry. The purpose of the study is to analyze the current state and trends in the Russian market of full-cycle construction companies.Materials and methods. Theoretical analysis of research works, statistical data analysis and comparative analysis, data generalization and systematization are among the main research methods.Results. Key trends governing the development of the market of full-cycle construction companies were identified by means of secondary data processing and computing the average annual growth rate. The main factors determining the current state of the market of full-cycle construction companies were systematized. Opinions of scientists, experts, as well as statistics were analyzed to systematize the reasons and factors, characterizing the current state of this market.Conclusions. Despite the positive dynamics, observed in the market of full-cycle construction companies, some administrative and legal factors restrain its development and act as barriers to its qualitative changes. In turn, regulatory authorities must meet the challenge of introducing digital technologies in the construction industry amid sanctions and import substitution of software for full-cycle construction companies preferring foreign alternatives.

This paper considers a supply chain consisting of a manufacturer and a retailer. The manufacturer sells its products through the retailer and an online platform and adopts green technology in the blockchain era. The platform can operate with marketplace mode or reselling mode. The network effect is considered to reflect the power of the platform to enlarge the potential market size. In the decentralised supply chain, the online platform encroaches the offline demand despite the same retail price. The increase of the network coefficient improves the abatement level, and benefits the manufacturer and the platform but damages the retailer's profit. For the supply chain coordination, the abatement level with reselling mode in the centralised supply chain is less than that in the decentralised supply chain if the network coefficient is high. Both marketplace mode and reselling mode can coordinate the supply chain if the network coefficient is low. Blockchain technology helps the products become greener and brings more profits for the manufacturer and the platform. And it induces supply chain coordination. Based on real data of a supply chain, its profit is increased by 3% after coordination. [ABSTRACT FROM AUTHOR]

We build a multi-period pricing model between a blockchain-technology-supported platform and a traditional platform, where the blockchain-technology-supported platform provides a higher value for customers. Customers are influenced by network effect, that is, they value a platform more if the platform has more users. As either platform can adopt static pricing or dynamic pricing, four scenarios may occur. By deriving the equilibrium of each scenario, we reveal the 'Matthew effect' caused by network effect, that platform advantage (from adopting blockchain technology) or disadvantage (from not adopting blockchain technology) accumulates as time goes by. Thus, platforms are advised to adopt the blockchain technology antecedent to the competitors. Network effect, which amplifies the benefit of initial users, may intensify price competition and harm both platforms. By comparing the four scenarios, we derive the equilibrium pricing strategies: when network effect is weak, one platform adopts static pricing and the other adopts dynamic pricing; when network effect is medium, the blockchain-technology-supported platform adopts static pricing and the traditional platform adopts dynamic pricing; and when network effect is strong, both platforms adopt dynamic pricing. Dynamic pricing is more desirable for the traditional platform relative to the blockchain-technology-supported platform. [ABSTRACT FROM AUTHOR]

Effects of xanthene dyes and aerosil nanoparticles on the structure and dynamic characteristics of the cross-linked polyurethane were investigated by the IR-spectroscopy, dynamic-mechanical analysis, and electronic paramagnetic resonance methods. Dye molecule presence causes self-association of urethane groups within polymer rigid segments, weaker interactions between urethane groups and flexible oligoether parts and increased oligoether mobility. Increased mobility of flexible segments by xanthene dyes provides the necessary beam strength due to compensating the nanofiller network effect. The most efficient polyurethane material in the radiation resistance is expected to be a polymer composite with the highest permeability and the lowest modulus of elasticity. [ABSTRACT FROM AUTHOR]

In this paper, we aim to investigate the collusive stability in the presence of network externalities among firms with relative performance in the firm's objective functions. We demonstrate that collusive stability is increasing (decreasing) in the degree of relative performance, product substitutability and network effect when the network effect is sufficiently large (small). A competition agency might need to provide different guidance for anti-competitive regulation in the network industry. [ABSTRACT FROM AUTHOR]

This paper explores the motives and mechanisms behind data localization implemented by states to protect data, which is essential to emerging technologies such as Artificial Intelligence. Despite the significant negative aspects of data localization for states, the practice has become increasingly prevalent, leading to the unexplored question of why states choose to implement it. This suggests that data localization is a form of economic means derived from digital technologies and employed by states to serve political objectives. Focusing on the data in platforms, the theoretical mechanism of data localization is captured in light of two factors: network perception and security externality. Network perception pertains to a state's perception of the positive network effect generated by platforms, while security externality refers to a state's consideration of the security implications in relation to the economic benefits derived from the positive network effect, serving the national interest in domestic and/or international contexts. To substantiate these theoretical propositions, the paper employs a comparative case study approach where Vietnam, Singapore, and Indonesia have been chosen as empirical cases based on the selection strategy. The paper bridges the concept of economic statecraft with digital technologies, fosters interdisciplinary discussions, and offers policy implications. [ABSTRACT FROM AUTHOR]

There is plenty of evidence to suggest that global carbon emission transfer has evolved into a mutually related system, where a realistic and complex network is formed. To profile the structures and features in the global carbon emission transfer network, a carbon-connectedness network model is adapted and combined with the multiregional input–output analysis framework, on the basis of massive and multi-layer global carbon flow data. This study formulates the topological features, spatio-temporal features, dynamic features and core–periphery features from a brand-new perspective on China. Meanwhile, this study identifies the network effects in the global carbon transfer network, including spillover, spillin and spillback effects. In general, an increase in China's carbon emission transfer would lead to significant spillover effects on most economies worldwide, especially on developing economies and those with weaker tertiary industry or situated at the upstream of the global value chain. Simultaneously, China itself would also face substantial spillback effects. Spillovers and spillbacks underscore a broader negative impact that exceeds its initial magnitude. Focused on the connectedness network centered on China, this study is complementary to traditional insights, helping to comprehend the connections and relationships of carbon emissions among economies. This understanding is of substantive significance for the formulation of multi-national mitigation strategies and fostering global climate governance cooperation. [ABSTRACT FROM AUTHOR]

The lack of interoperable data standards among reference genome data-sharing platforms inhibits cross-platform analysis while increasing the risk of data provenance loss. Here, we describe the FAIR bioHeaders Reference genome (FHR), a metadata standard guided by the principles of Findability, Accessibility, Interoperability and Reuse (FAIR) in addition to the principles of Transparency, Responsibility, User focus, Sustainability and Technology. The objective of FHR is to provide an extensive set of data serialisation methods and minimum data field requirements while still maintaining extensibility, flexibility and expressivity in an increasingly decentralised genomic data ecosystem. The effort needed to implement FHR is low; FHR's design philosophy ensures easy implementation while retaining the benefits gained from recording both machine and human-readable provenance. [ABSTRACT FROM AUTHOR]

This study investigates how the value propositions in interdependent digital and analogue markets differ from each other. For this purpose, we conducted a content analysis and comparative case-study of four Dutch journalistic platforms that operate in markets for print and online advertising and paying audiences (subscriptions or memberships). First, we find that in digital (online) markets the value propositions on both market sides are more fused than in analogue markets. Second, we find that this is the reason for online platforms that serve the paying audiences, to offer advertising-free content. This suggests that there is not always a mutual dependency of the two market-sides as platform scholars assume, but that there may be a tension arising from interdependency, where some users may actually be attracted to the absence of the other market-side (advertising) and indirect network effect exploitation. [ABSTRACT FROM AUTHOR]

This paper studies the impacts of geographic proximity and investment connection on the outward foreign direct investment (OFDI) decisions by Chinese multinational firms, including both greenfield investment and cross‐border merger and acquisition. We model firms' OFDI expansion with the lagged spatial structure, and collect outward FDI data of 3479 Chinese multinational firms from 2002 to 2013 whose investment destination covers more than 160 countries. We find that the spatial expansion of firms' existing OFDI play an important role in shaping their future investment decisions. Firstly, firms tends to invest in destinations that are closer to China, and expand further into destinations that are geographically closer to their existing OFDI locations. This is the geographic network effect. Secondly, we also find that firms are more likely to invest in countries with more intense FDI from China, and extend their OFDI networks to destinations with stronger investment connections with their existing subsidiary locations. This is the investment network effect. We show that these two effects are robust to alternative investment and geographic network measures and further controls. [ABSTRACT FROM AUTHOR]

At present, two subsidy policies, which are based on electric vehicle (EV) consumers and EV charging station firms, have been widely implemented in different areas in China to promote EV adoption. However, the effectiveness of subsidy policies is significantly influenced by the indirect network and herd effects, depicting the positive impacts of the numbers of energy infrastructure firms and the sales of vehicles on consumers' utilities, respectively. Taking the aforementioned effects into consideration, this study examines the optimal subsidy policies by developing a Stackelberg game model. The game model analyzes the interaction and decisions of multiple stakeholders (i.e., consumers, energy infrastructure firms, EV and gasoline vehicle manufacturers, and the government). Interestingly, we find that a stronger herd effect will promote EV sales when the unit production cost of EVs is low; however, it will hinder EV sales when the unit production cost is high. Besides, we compare the effectiveness of the two subsidy policies for promoting EV adoption, reducing environmental impacts, and increasing the social welfare. Findings show that the effectiveness of subsidy policies highly depends on the extent of the indirect network and herd effects. Specifically, compared with EV consumers-based subsidy policy, EV charging station firms-based subsidy policy will be more effective in only two conditions: a weak indirect network effect and a strong herd effect. Otherwise, the EV consumers-based subsidy policy will be more effective. The findings of the paper are helpful in enhancing the effectiveness of subsidy policy in China. • Government subsidy cannot always promote electric vehicle adoption. • The indirect network and herd effects affect the effectiveness of subsidy policy. • A stronger herd effect will not always promote electric vehicle sales. • Either consumers or charging station investors can be the best subsidy object. [ABSTRACT FROM AUTHOR]

Firms are embedded in complex networks, where diverse ideas combine and generate new ideas. Shareholders of firms are often seen as critical external resources that have significant influence on firm innovation. The current literature tends to focus on the relationship between firms and their shareholders, while paying less attention to the connections between firms with the same shareholders. This article identifies two types of network spillover effects, intra-city network effect and inter-city network effect, by visualizing the co-ownership networks in China's electric vehicle (EV) industry. We find that firms with the same shareholders, which are defined as co-owned EV firms, are more innovative than non-co-owned ones. Furthermore, there are two dominant types of firm co-ownership ties formed by corporate and financial institution shareholders. While corporate shareholders help exploiting local tacit knowledge, financial institutions are more active in bridging inter-city connections. The conclusion is confirmed at both firm and city levels. This paper theorizes the firm co-ownership network as a new form of institutional proximity and tested the result empirically. For policy consideration, we have emphasized the importance of building formal or informal inter-firm network, and the government should further enhance the knowledge flow channel by institutional construction. [ABSTRACT FROM AUTHOR]

We propose an optimal pricing model for products with both positive and negative network effects. A closed-form expression of the optimal pricing policy is derived under the assumption that the demand function is linear. When there are two customer types with different attitudes towards congestion, the monotonicity of the optimal price differs according to the price sensitivity of each customer type. We show that even if the number of customers who are averse to congestion increases, if the negative-type price sensitivity is low and the positive network effect is weak, increasing the optimal price will increase total profit. [ABSTRACT FROM AUTHOR]

In freemium platforms where the basic usage fee is free, operators have the advantage of acquiring users without incurring advertising costs. However, Japanese operators often place TV advertisements, which are generally considered to be expensive. Therefore, an empirical study on the effectiveness of advertising in freemium services was conducted. Specifically, the impact of TV advertising on manga purchases of free members or non-members was analyzed, based on single source data for TV advertisement viewership and membership status at two time points for two freemium manga app companies. The results showed that the number of TV advertisements watched during the week when viewers converted to paying purchasers, and the interaction with the number of TV advertisements watched one to two weeks prior, had a positive impact on purchases. These results suggest that advertising is effective, even for freemium platforms where network effects can be expected. This indicates the possibility and need for development of marketing strategies that integrate network effects and advertising theories.

The growing use of online social networks has intensified the focus on customer lifetime value (CLV), particularly how social conformity and influence shape purchasing decisions. Traditional CLV models have primarily captured positive interactions within networks but have largely ignored negative influences and the degree of customer susceptibility to conformity. These oversights limit the effectiveness of existing models when applied to real-world datasets. This paper introduces a novel model that enhances the estimation of CLV by incorporating both positive and negative interactions through sentiment analysis. The model leverages the CASINO algorithm to integrate social influence and conformity extracted from interpersonal interactions, building upon the foundational customer lifetime network value model. We validate our model using both semi-simulated and real-world data, comparing its performance with traditional approaches and illustrating its improved capacity to reflect complex social dynamics in CLV calculations.

Multi-sided platforms (MSPs) are becoming increasingly important in contemporary economies. This special issue of California Management Review aims to stimulate collective discussion among researchers and practitioners on advancing diverse types of MSPs and on better understanding their future development. This article analyzes five contributions to this special issue and explores the growth trajectories of MSPs. There are three types of platforms: born-platform, platform-born adjacent, and incumbent-born. And they rely respectively on three market entry strategies: market creation, market broadening, and market deepening. This article also spotlights the coopetition dynamics of the platforms. [ABSTRACT FROM AUTHOR]

In the traditional offline context, the mental health industry suffers from poor local demand and a lack of trustworthy supply. Emerging digital platforms can solve this problem to a large extent by building network effects. How to build network effects is a primary issue for mental health platforms. This article explores this problem by investigating two cases from China. Platform firms can design mechanisms to increase user scale, multiply user roles, facilitate user engagement, and enhance user trust on platforms. The pioneer platform and the later entrant can implement different strategies for building network effects. [ABSTRACT FROM AUTHOR]

Extant research has popularized the perspective that strong network effects produce "winner-take-all" outcomes, which leads platforms to invest in user growth and encourages investors to subsidize these platforms. However, user growth does not necessarily imply strong user stickiness. Without user stickiness, strong network effects in the current period may fade in future periods, thus rendering a user growth strategy ineffective. By adding a time dimension to network effects, we developed a model of cross-period and within-period network effects to explain how different types of network effects drive value. We emphasize that the cross-period same-side network effect contributes to user stickiness, while the within-period cross-side network effect persists conditional on user stickiness. We propose that one reason for platforms having heterogeneous cross-period same-side network effects is because of the "product learning" mechanism: it is expected that products with higher uncertainty have a stronger cross-period same-side network effect. Based on different drivers, we extend the customer lifetime value model (CLV2) to two-sided platform markets, allowing us to measure how different interventions drive platform value. Using Groupon data, we verify our insights and discuss platform design choices that enhance user stickiness when the cross-period same-side network effect is weak. [ABSTRACT FROM AUTHOR]

This paper examines the impact of participation in direct marketing on the entire distribution of farm sales for African American (AA) operations using the unconditional quantile regression (UQR) estimator. Our analysis yields unbiased estimates of the unconditional impact of direct marketing on farm sales and reveals the heterogeneous effects that occur across the distribution of farm sales. The sales gap for AA‐led operations is about 11% across all quantiles when we control for farming and marketing experience along with key features of the farm operation such as crop choice and geographic location. The relative sales gap for AA operations declines across the distribution of farm sales and actually disappears for the largest operations. The network effect that we identify is associated with a sales premium for AA‐led operations relative to other operations engaged in direct marketing. Marketing experts and extension professionals can use this information to guide farmers who are considering initiating or expanding direct marketing activities. [ABSTRACT FROM AUTHOR]

Large-scale research infrastructures (LSRIs) are widely acknowledged as a crucial instrument for venturing into the uncharted territories of science and technology, as well as contributing to the well-being of society. However, only a limited number of literature have scrutinized the impact of LSRIs, founded upon a causal inference framework. Moreover, the function of LSRIs in the advancement of innovation at the regional level remains inadequately identified. Drawing on the resource-based view, this study develops a conceptual framework that links the scientific effect of LSRIs to innovation resources in order to assess their impact on knowledge innovation (KI). Taking China's National Supercomputing Center (NSC) as a case, three major mechanism hypotheses are proposed for the impact of NSC on KI, including basic effect, network effect, and technology effect. Using panel data from 283 cities in China from 2000 to 2020, we employ a spatial difference-in-differences estimation model to examine the impact of NSC on KI. The research finds that: (1) The construction of NSC stimulates KI in local and surrounding areas. (2) The main mechanisms by which NSC promotes KI include the increase in fiscal investment and talents in science, the improvement of digital infrastructure, as well as the enhancement of urban network centrality and innovation efficiency. (3) Geographical proximity, cooperation proximity, and digitization proximity constitute the main channels of policy spillover. (4) NSC has not shown significant promotion of regional innovation convergence, and its radiation influence needs further improvement. (5) The knowledge innovation effects of NSCs manifest heterogeneity based on the distinct knowledge orientation and innovation environment, with this impact being notably pronounced in application innovation-oriented cities such as Shenzhen. The results of this study reveal the positive yet limited impact of NSC on KI and provide a reference for other economies in the areas of LSRIs, digital infrastructure, and the formulation of place-based innovation policy. [ABSTRACT FROM AUTHOR]

Blood metabolite levels are affected by numerous factors, including preanalytical factors such as collection methods and geographical sites. These perturbations have caused deleterious consequences for many metabolomics studies and represent a major challenge in the metabolomics field. It is important to understand these factors and develop models to reduce their perturbations. However, to date, the lack of suitable mathematical models for blood metabolite levels under homeostasis has hindered progress. In this study, we develop quantitative models of blood metabolite levels in healthy adults based on multisite sample cohorts that mimic the current challenge. Five cohorts of samples obtained across four geographically distinct sites were investigated, focusing on approximately 50 metabolites that were quantified using 1H NMR spectroscopy. More than one-third of the variation in these metabolite profiles is due to cross-cohort variation. A dramatic reduction in the variation of metabolite levels (90%), especially their site-to-site variation (95%), was achieved by modeling each metabolite using demographic and clinical factors and especially other metabolites, as observed in the top principal components. The results also reveal that several metabolites contribute disproportionately to such variation, which could be explained by their association with biological pathways including biosynthesis and degradation. The study demonstrates an intriguing network effect of metabolites that can be utilized to better define homeostatic metabolite levels, which may have implications for improved health monitoring. As an example of the potential utility of the approach, we show that modeling gender-related metabolic differences retains the interesting variance while reducing unwanted (site-related) variance. [ABSTRACT FROM AUTHOR]

Traditionally regarded as one of the least digitised industries, agriculture is now transforming due to the emergence of digital platforms and ecosystems. Extant literature underscores Agtech platforms as business solutions capable of remedying operational inefficiencies, diminishing transaction costs, enhancing information exchange, mitigating spatiotemporal disparities, facilitating market integration, and generating novel forms of value. Nevertheless, persistent ambiguity surrounds the identification and assessment of the functional roles of peripheral actors, referred to as complementors, who play a pivotal role in engendering network effects. Grounded in network externality theory and platform value proposition framework, this study seeks to comprehensively discern complementors, lead firms, and end-users associated with Agtech platforms and their overarching value propositions. Employing the case research method, we synthesise existing literature and review archival sources while focusing on four illustrative cases: Dehaat, Agrielevate, IFFCO Bazar, and KRIBHCO-CSC-eGov. The analysis was further strengthened through consultation with domain experts, facilitating triangulation and validation. This study offers insights into complementor-core, lead firm, and end-user groups within Agtech platforms, thus deepening our epistemic comprehension. [ABSTRACT FROM AUTHOR]

With the rapid development of information technology, third-party platforms have emerged and become the important channels to promote collaborations among manufacturing enterprises. Under this background, this paper focuses on a third-party platform whose multilateral users are manufacturers, suppliers, and logistics providers. There exist various cross-side network effects (i.e., CNEs) and same-side network effects (i.e., SNEs) among users (including manufacturers, suppliers, and logistics providers) at different development stages of the platform, which may affect the multi-value chain collaboration of users positively or negatively. By building a system dynamics model, this paper examines the interactions of the network effects and analyzes their impacts on the multi-value chain collaboration and platform's revenues. Then, the key factors that affect the network effect interactions are explored. The results show that the network effect interactions are significant in the early development stage of the platform. The growth of the SNEs of suppliers and logistics providers has significant impacts on their own CNEs and profits. Interestingly, the increase of manufacturers' SNEs can affect the CNEs of their own and suppliers simultaneously, which may decrease the profits of other participants but does not change their own profits. Affected by multiple network effects, the platform needs to implement a differentiated pricing strategy for its users. That is, the platform should charge suppliers and logistics providers access fee while giving manufacturers a certain subsidy. These findings can provide some valuable insights to the operation of the third-party platform. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the network effect of school principals as it relates to school improvement. Network practices of school principals are compared to an innovative practice for improving networking practices. Through descriptive statistics and chi-square goodness of fit, we illustrate the difference between what school principals do concerning their networking practices for school improvement compared to an innovative ideal approach for using network working for school improvement. Findings indicate there is a statistically significant difference between school principals' networking practices in comparison to ideal networking practices for school improvement. There are also differences between who school principals seek out for ideas and who they seek out for feedback concerning their school improvements. Further discussion informs how the next generation of school principals can be equipped with innovative skills for tackling 21st-century school improvement issues. [ABSTRACT FROM AUTHOR]

Using an appropriate game-theoretic approach, this article develops a non-cooperative two-stage game in a Cournot duopolistic network industry in which firms strategically choose whether to produce compatible goods in the first decision-making stage. Quality differentiation affects the sub-game perfect Nash equilibrium (SPNE): (i) the network effect acts differently between low- and high-quality firms, depending on their compatibility choice; (ii) if the network externality is positive (resp. negative), to produce compatible (resp. incompatible) goods is the unique SPNE; however, this equilibrium configuration leads the high-quality firm to be worse off; (iii) there is room for a side payment from the high- to the low-quality firm to deviate toward incompatibility (resp. compatibility) under positive (resp. negative) network externality. This payment represents a Pareto improvement on the firm side but not from a societal perspective, as consumers would be worse off. The article also pinpoints the social welfare outcomes corresponding to the SPNE. [ABSTRACT FROM AUTHOR]

Today media and sports are indivisible, having a kind of inseparable, mutually influential relationship. Media attracts audiences and generates profit through sports. In its turn, sports content is disseminated, transmitted, and popularized through the media. Thus, theoretically, sports and media exist in symbiosis. However, practically, this relationship is complex and includes many factors. First of all, in recent decades, the process of overall digitalization (and digital transformation) of all fields of life has had a crucial impact on sport, media, and their interrelationship. This paper aims to conceptualize and analyze the possible impact of digitalization on “winner-takes-all” (WTA) (winner-takes-most, WTM) dynamics in the professional sports industry, notably for spectating audiences, and answer the question: “Can digitalization be seen as a driver of ecosystem change and how it should be tested?” This conceptual model paper seeks to construct and develop a theoretical framework that can explain and predict relationships between concepts of digitalization and key sport spectating variables: audience, TV rights, and revenue through a prism of WTA. We found that the technological change in the sports media market and the greater global-orientated strategy of leading sports organizations have re-sorted and compressed many market shares, but the effect of technological disruption has been significantly less pronounced for the most powerful digital leaders in the industry. To this end, we represent digitalization as the main accelerating factor of the WTA effect (along with other auxiliary effects) in the sports industry and propose future research directions and perspectives.

Adopting subscription models has become a popular trend in e-commerce. Digital content platforms often use free trials to attract potential subscribers. However, rigorous research on platforms’ free trial strategies is lacking. Our paper aims to fill this gap using a horizontal duopoly framework. We investigate both the scenario of market symmetry and of market asymmetry. We study the benchmark case with no free trial for each scenario and derive equilibrium results with free trial promotion. We find that the platform will not benefit from free trials unless consumers’ learning rate exceeds a threshold. When a free trial is introduced in market symmetry, a higher rate of consumers’ learning leads to a higher price of subscription and a shorter free trial length. In addition, when the network effect is incorporated, the platform will introduce a lower subscription price and a shorter free trial length. Under market asymmetry, our results show that the platform faces a higher threshold of consumers’ learning rate. Additionally, it will offer a higher price and a longer period of free trial compared with those under the market symmetry scenario. Overall, our study provides useful managerial insights for online content platforms when considering their subscription strategies.

The article examines Clough and Wu's 2022 response to a 2021 article by Gregory, Henfridsson, Kaganer, and Kyriakou on artificial intelligence and data network effects on user value creation. The authors call for balancing stakeholder interests, the alleged duality of value capture and value creation, and the ownership of data for improvement via artificial intelligence.

The article "The Role of Artificial Intelligence and Data Network Effects for Creating User Value" by Gregory, Henfridsson, Kaganer, and Kyriakou on the creation of user value via artificial intelligence is reviewed. Topics of analysis include user-level price discrimination, the alleged tradeoff between value capture and value creation, and the alleged (mis)categorization of data-driven learning as a network effect.

Software-as-a-service (SaaS) is gaining tremendous popularity in the enterprise software releases, which has brought the growing challenge for the incumbent used to adopt the on-premise licensing model. In this paper, we focus on the optimal versioning strategy problem of the incumbent when he faces the competition from the entrant who releases the SaaS software. He can choose from providing the upgraded on-premise software, turning to offer the SaaS version of the software, and releasing both the versions. We indicate that releasing both versions won't be the optimal choice in the competitive environment. When the upgrade cost is above a certain value, and the gap of value is below a threshold positively linear correlated with the upgrade cost, the incumbent prefers the SaaS strategy. Otherwise, the on-premise strategy generates the highest profit. A special case is that in the medium switching cost environment, the SaaS strategy can be optimal for all possible values of upgrade cost. Finally, We consider the problem in the presence of network effect and in the uncovered market setting. The results provide effective managerial insights into the strategy selection for the incumbent. [ABSTRACT FROM AUTHOR]

Purpose: The objective of this publication is to understand and explain the relationships between the creation of the value network and the conversion of the business model of technology enterprises that are built on digital platforms. Design/methodology/approach: To accomplish the assumed objective, the following research methods were used: critical analysis of literature, case study and trend analysis. The research period is the years 2018-2022. The case study deals with the examples of companies that are listed on the Nasdaq Stock Exchange or NYSE: Amazon, Alibaba, and Facebook. Findings: The results of the empirical research in terms of acquiring knowledge about the relationships between the creation of value networks and the conversion of the business model of the surveyed technology companies show that the surveyed enterprises convert their business models by creating the value network, competing for customers on the market of digital platforms. Understanding the processes of creating the value network in the business model enables long-term competition on the market, which at the same time shapes the development of the enterprise. Originality/value: The publication deepens the understanding of the dynamic perspective of creating the value network extended to the catalog of stakeholders of the value created, from customers and owners to suppliers, and potentially by other stakeholders, creating the value network. The construct of the value network allows for searching for new areas of value creation, pointing to the network effect, which may, on the one hand, strengthen value generation, and on the other hand, may lead to its destruction. [ABSTRACT FROM AUTHOR]

This paper provides a thorough analysis of an oligopolistic market for a vaccine, characterized by negative (demand-side) network externalities, which stem from the free-riding behavior of individuals engaged in a vaccination game. We investigate industry viability in terms of a standard natural Cournot-type learning process for network industries and show that viability tends to favor monopoly or competition among few suppliers. We confirm that market performance is highly inefficient, due to the combination of three imperfections: market power, network effects and a health externality (i.e., contagion). We investigate the extent of these imperfections. Finally, we devise a two-part government subsidy scheme for producers and consumers that may restore social efficiency in such markets. [ABSTRACT FROM AUTHOR]

Objectives: To understand the distribution and secular trends of Chinese adult boys and girls and investigate their spatial network effects and determinants of spatial network effects. Methods: Our study extracted data of 18‐year‐old boys and 17‐year‐old girls in China from the national students fitness and health survey reports in 1985, 2000, 2010, and 2019. A total of 89 839 participants were selected. The growth range and growth rate in each period were calculated. A neighborhood relationship network was created to share the common boundary. Results: During the period 1985–2019, the average height of Chinese 18‐year‐old boys increased from 168.19 to 172.14 cm, and that of 17‐year‐old girls increased from 156.97 to 160.17 cm (all p trend <.05). Both boys and girls showed significant correlations in first‐ and second‐level neighbors (all p <.05) with the most significant correlations in first‐level neighbors (all p <.001). But there were no significant correlations in third‐level neighbors. Height of girls and boys in each region was correlated with gross domestic product (GDP) per capita, urbanization rate, population density, longitude, and latitude. After controlling for factors with significance, only the initial regional height of girls in 2000 was positively correlated with first level neighborhood (p <.05). Conclusion: Since 1985, the heights of Chinese boys aged 18 and girls aged 17 have been increasing and the increases accelerated. Height is related to nearer neighbors. After controlling GDP per capita, urbanization rate, population density, longitude and latitude, the correlations has almost disappeared. [ABSTRACT FROM AUTHOR]

Neural circuits with multiple discrete attractor states could support a variety of cognitive tasks according to both empirical data and model simulations. We assess the conditions for such multistability in neural systems using a firing rate model framework, in which clusters of similarly responsive neurons are represented as single units, which interact with each other through independent random connections. We explore the range of conditions in which multistability arises via recurrent input from other units while individual units, typically with some degree of self-excitation, lack sufficient self-excitation to become bistable on their own. We find many cases of multistability—defined as the system possessing more than one stable fixed point—in which stable states arise via a network effect, allowing subsets of units to maintain each others' activity because their net input to each other when active is sufficiently positive. In terms of the strength of within-unit self-excitation and standard deviation of random cross-connections, the region of multistability depends on the response function of units. Indeed, multistability can arise with zero self-excitation, purely through zero-mean random cross-connections, if the response function rises supralinearly at low inputs from a value near zero at zero input. We simulate and analyze finite systems, showing that the probability of multistability can peak at intermediate system size, and connect with other literature analyzing similar systems in the infinite-size limit. We find regions of multistability with a bimodal distribution for the number of active units in a stable state. Finally, we find evidence for a log-normal distribution of sizes of attractor basins, which produces Zipf's Law when enumerating the proportion of trials within which random initial conditions lead to a particular stable state of the system. [ABSTRACT FROM AUTHOR]

Adopting subscription models has become a popular trend in e-commerce. Digital content platforms often use free trials to attract potential subscribers. However, rigorous research on platforms' free trial strategies is lacking. Our paper aims to fill this gap using a horizontal duopoly framework. We investigate both the scenario of market symmetry and of market asymmetry. We study the benchmark case with no free trial for each scenario and derive equilibrium results with free trial promotion. We find that the platform will not benefit from free trials unless consumers' learning rate exceeds a threshold. When a free trial is introduced in market symmetry, a higher rate of consumers' learning leads to a higher price of subscription and a shorter free trial length. In addition, when the network effect is incorporated, the platform will introduce a lower subscription price and a shorter free trial length. Under market asymmetry, our results show that the platform faces a higher threshold of consumers' learning rate. Additionally, it will offer a higher price and a longer period of free trial compared with those under the market symmetry scenario. Overall, our study provides useful managerial insights for online content platforms when considering their subscription strategies. [ABSTRACT FROM AUTHOR]

The pricing of ride-hailing platforms (e.g., Didi Rider and Uber) is heavily and simultaneously influenced by the cross-group network effect and congestion effect. To analyze the bilateral pricing of ride-hailing platforms under the influence of these two effects, in this paper we construct a game-theoretic model under four different scenarios and analyze the equilibrium outcomes. The results show that: (1) when both passengers and drivers are sensitive to hassle costs, if the cross-group network effect on the passenger side is higher than that on the driver side, then the platform's pricing on both sides increases with the increase in the congestion effect, otherwise the prices on both sides of the platform decrease with the increase in the congestion effect; (2) when passengers are sensitive to hassle costs and drivers are sensitive to price, if the ratio for passengers' and drivers' different perceptions of price and hassle cost is greater than a certain threshold, then the platform's pricing on the passenger side increases with the increase in the congestion effect and the platform's pricing on the driver side decreases with the increase in the congestion effect, otherwise the platform's pricing on the passenger side decreases with the increase in the congestion effect and the platform's pricing on the drivers' side increases with the increase in the congestion effect; (3) when passengers are sensitive to price and drivers are sensitive to hassle costs, if the ratio for passengers' and drivers' different perceptions of price and hassle costs is greater than a certain threshold, then the platform's pricing on the passenger side decreases with the increase in the congestion effect and the platform's pricing on the drivers' side increases with the increase in the congestion effect, otherwise the platform's pricing on the passenger side increases with the increase of the congestion effect and the platform's pricing on the driver side decreases with the increase in the congestion effect; (4) when both passengers and drivers are price-sensitive, if the cross-group network effect on the passengers' side is larger than that on the drivers' side, then the platform should decrease its pricing on both sides with the increase in the congestion effect, otherwise, if the cross-group network effect on the passengers' side is less than that on the drivers' side, the platform should increase its pricing on both sides with the increase in the congestion effect; (5) the platform is able to generate the highest profit in each scenario, and the results of the profit comparison between the four scenarios depends on the cross-group network effects and the congestion effects on both the passengers' and the drivers' sides. [ABSTRACT FROM AUTHOR]

Firms increasingly establish digital industrial platforms to cope with the adaption of the industrial internet of things (IIoT) paradigm. The tremendous success of digital platforms in many platform-mediated industries can be traced back to the ignition of network externalities. However, the impact of network externalities is still under discussion in the IIoT domain, and their measurement remains a challenge for platform companies. This paper outlines how network effects were measured in the existing research, deriving three dimensions of network effects for IIoT: (1) ecosystem utility, (2) complementarity, and (3) compatibility. This conceptualization is further used in an empirical study with practitioners from digital industrial platform organizations to enable performance measurement of network effects in IIoT by developing 20 key performance indicators (KPIs). Based on the empirical study results, this paper proposes a framework for balanced platform management. Utilizing the goals of a balanced scorecard, the framework emphasizes the trade-off between the contradicting perspectives on costly network effect simulation and platform earnings that platform managers need to balance. The KPI portfolio can support platform managers in implementing the framework. [ABSTRACT FROM AUTHOR]