Kim, Dong- Hwan with Jae-Ho Juhn, "Dynamics of Networks: System Dynamics Model for Network Externality and Critical Mass", 1996

ua435

Information age comes with network: broadband networks of telecommunication and cable TV, networks of hardware and software, networks of electronic money services, networks of Internet web sites. Recently, some economists have developed a systematic approach to analyze the characteristics of networks. They introduced the concept of network externality and critical mass as building blocks for explaining the positive loop characteristics networks (Katz & Shapiro 1985: Economides 1955). However, their economic model is far from complete and dynamic. Paradoxically enough, the economic model of networks is based on the concept of equilibriums which oppress dynamic behavior of network evolution. In this paper, we developed a system dynamics model of networks focuses in the equilibrium state of networks, the SD model of networks focuses on the historical path towards the evolution of networks.

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  • 1996
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System Dynamic Society Records

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