Network effects, compatibility, and adoption of standards [Elektronische Ressource] : essays in empirical industrial economics / von Michał Grajek

Michal Grajek

Sujets

• Handel

Informations

• Publié par: humboldt-universitat_zu_berlin
• Publié le: 01 janvier 2004
• Nombre de lectures: 14
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Network Effects, Compatibility,
and Adoption of Standards:
Essays in Empirical Industrial Economics


DISSERTATION


zur Erlangung des akademischen Grades
doctor rerum politicarum
(Doktor der Wirtschaftswissenschaften)

eingereicht an der

Wirtschaftswisseschaftlichen Fakultät
der Humboldt-Universität zu Berlin

von

Magister Ekonomii Micha ł Grajek,
geboren am 23.05.1975 in Warszawa (Polen)







Präsident der Humboldt-Universität zu Berlin:
Prof. Dr. Jürgen Mlynek
Dekan der Wirtschaftswissenschaftlichen Fakultät:
Prof. Dr. Joachim Schwalbach
Gutachter 1: Prof. Lars-Hendrik Röller, Ph.D.
Gutachter 2: Prof. Dr. Ulrich Kamecke

eingereicht am: 06.10.2004
Tag der mündlichen Prüfung: 10.12.2004 Abstract
This thesis introduces a structural econometric model of demand exhibiting direct network
effects. The structural approach we follow allows us to identify the extent of network effects
and compatibility between competing networks. To the best of our knowledge, this is the first
model that facilitates the identification in the case of direct network effects. At the same time,
it is the first attempt to assess the degree of compatibility in an econometric framework. The
model is then applied to investigate demand for mobile telecommunications service and the
link between adoptions of ISO 9000 standard and international trade. The estimation results
allow us to formulate some interesting policy conclusions.

Keywords:
Network Effects, Compatibility, Identification, Estimation, Mobile Telecommunications, ISO
9000, International Trade



Zusammenfassung
Diese Dissertation stellt ein strukturelles ökonometrisches Modell der Nachfrage mit direkten
Netzwerkeffekten vor. Der strukturelle Ansatz ermöglicht es, den Umfang von
Netzwerkeffekten and Netwerkkompatibilität zu identifizieren. Nach unserem Wissen ist es
das erste Modell, das diese Identifikation im Falle von direkten Netzwerkeffekten ermöglicht.
Gleichzeitig ist es der erste Versuch, den Umfang von Netzwerkkompatibilität mit
ökonometrischen Methoden zu bestimmen. Das Modell wird dann angewandt, um die
Nachfrage von Mobilfunkdienstleistungen, als auch den Zusammenhang zwischen ISO 9000
Normierung und internationalem Handel zu untersuchen. Die Schätzungsergebnisse führen zu
interessanten wirtschaftspolitischen Folgerungen.

Schlagwörter:
Netzwerkeffekten, Netzwekkompatibilität, Identifikation, Schätzung,
Mobilfunktelekommunikation, ISO 9000, Internationaler Handel


Contents


List of Tables........................................................................................................iii
List of Figures ......................................................................................................iv
Acknowledgements ............................................................................................... v
Chapter 1 Introduction ........................................................................................ 1
1.1 Why is this interesting?....................................................................................................1
1.2 Literature .......................................................................................................................... 2
1.3 Contribution of the thesis ................................................................................................. 5
Chapter 2 Identification of Network Externalities in Markets for Non-Durables
............................................................................................................................... 8
2.1 Introduction ...................................................................................................................... 8
2.2 Economic model............................................................................................................. 12
2.2.1 Willingness-to-pay function.................................................................................... 12
2.2.2 Subscription demand............................................................................................... 13
2.2.3 Switching costs........................................................................................................ 15
2.2.4 Supply of the network good 16
2.2.5 Dynamics of the network good adoption ................................................................ 17
2.3 Stochastic model ............................................................................................................ 21
2.3.1 Functional specification .......................................................................................... 21
2.3.2 Identification 23
2.3.3 Stochastic structure ................................................................................................. 26
2.3.4 Interpretation of the identified structural parameters.............................................. 27
2.4 Conclusions .................................................................................................................... 29
2.5 Appendices..................................................................................................................... 31
2.5.1 Derivatives of the function H with respect to x(t- δ) and p...................................... 31
2.5.2 State equations with firm-specific constants........................................................... 32
2.5.3 Figures..................................................................................................................... 34
iChapter 3 Estimating Network Effects and Compatibility in Mobile
Telecommunications ........................................................................................... 35
3.1 Introduction .................................................................................................................... 35
3.2 Mobile telecommunications 37
3.2.1 Network effects ....................................................................................................... 37
3.2.2 Description of the market........................................................................................ 39
3.3 A model of demand for mobile telephone service ......................................................... 40
3.4 Empirical evidence......................................................................................................... 44
3.4.1 Data ......................................................................................................................... 44
3.4.2 Estimation issues..................................................................................................... 45
3.4.3 Results and interpretations ...................................................................................... 48
3.5 Conclusions .................................................................................................................... 53
3.6 Appendices..................................................................................................................... 55
3.6.1 Direction of bias in the estimated price elasticity of demand ................................. 55
3.6.2 Tables ...................................................................................................................... 57
3.6.3 Figures..................................................................................................................... 59
Chapter 4 Diffusion of ISO 9000 Standards and International Trade .............. 63
4.1 Introduction .................................................................................................................... 63
4.2 ISO 9000 and its role in international trade ................................................................... 65
4.3 Economic models ........................................................................................................... 68
4.3.1 International trade flows.......................................................................................... 68
4.3.2 ISO 9000 diffusion.................................................................................................. 70
4.4 Empirical model ............................................................................................................. 72
4.4.1 Data ......................................................................................................................... 72
4.4.2 Implementation of gravity equation for trade ......................................................... 73
4.4.3 Implementation of ISO 9000 diffusion equation..................................................... 74
4.4.4 Discussion of the results 77
4.5 Conclusions .................................................................................................................... 82
4.6 Appendices..................................................................................................................... 84
4.6.1 Optimal timing of ISO 9000 adoptions................................................................... 84
4.6.2 Tables ..............................................................................................................