The Networked Economy

Roman Beck presents a new goods classification model to explore the dissemination of IT and e-business standards and designs two applications that support and improve firms' electronic interlaced communication by means of automation and standardization effects. He then examines how network effects drive the diffusion of communication standards and develops a model which is implemented as a simulation to show the dynamic interplay between direct and indirect network effects during the diffusion process. It also addresses critical mass and life cycle issues, as well as related utility changes in communication standards.