• Asia pacific journal of information systems
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• v.20 no.1
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• pp.127-140
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• 2010

The benefit that a consumer derives from the use of a good often depends on the number of other consumers purchasing the same goods or other compatible items. This property, which is known as network externality, is significant in many IT related industries. Over the past few decades, network externalities have been recognized in the context of physical networks such as the telephone and railroad industries. Today, as many products are provided as a form of system that consists of compatible components, the appreciation of network externality is becoming increasingly important. Network externalities have been extensively studied among economists who have been seeking to explain new phenomena resulting from rapid advancements in ICT (Information and Communication Technology). As a result of these efforts, a new body of theories for 'New Economy' has been proposed. The theoretical bottom-line argument of such theories is that technologies subject to network effects exhibit multiple equilibriums and will finally lock into a monopoly with one standard cornering the entire market. They emphasize that such "tippiness" is a typical characteristic in such networked markets, describing that multiple incompatible technologies rarely coexist and that the switch to a single, leading standard occurs suddenly. Moreover, it is argued that this standardization process is path dependent, and the ultimate outcome is unpredictable. With incomplete information about other actors' preferences, there can be excess inertia, as consumers only moderately favor the change, and hence are themselves insufficiently motivated to start the bandwagon rolling, but would get on it once it did start to roll. This startup problem can prevent the adoption of any standard at all, even if it is preferred by everyone. Conversely, excess momentum is another possible outcome, for example, if a sponsoring firm uses low prices during early periods of diffusion. The aim of this paper is to analyze the dynamics of the adoption process in markets exhibiting network effects by focusing on two factors; switching and agent heterogeneity. Switching is an important factor that should be considered in analyzing the adoption process. An agent's switching invokes switching by other adopters, which brings about a positive feedback process that can significantly complicate the adoption process. Agent heterogeneity also plays a important role in shaping the early development of the adoption process, which has a significant impact on the later development of the process. The effects of these two factors are analyzed by developing an agent-based simulation model. ABM is a computer-based simulation methodology that can offer many advantages over traditional analytical approaches. The model is designed such that agents have diverse preferences regarding technology and are allowed to switch their previous choice. The simulation results showed that the adoption processes in a market exhibiting networks effects are significantly affected by the distribution of agents and the occurrence of switching. In particular, it is found that both weak heterogeneity and strong network effects cause agents to start to switch early and this plays a role of expediting the emergence of 'lock-in.' When network effects are strong, agents are easily affected by changes in early market shares. This causes agents to switch earlier and in turn speeds up the market's tipping. The same effect is found in the case of highly homogeneous agents. When agents are highly homogeneous, the market starts to tip toward one technology rapidly, and its choice is not always consistent with the populations' initial inclination. Increased volatility and faster lock-in increase the possibility that the market will reach an unexpected outcome. The primary contribution of this study is the elucidation of the role of parameters characterizing the market in the development of the lock-in process, and identification of conditions where such unexpected outcomes happen.

• Journal of the Korean Regional Science Association
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• v.31 no.1
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• pp.3-20
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• 2015

The objective of this study is to identify the applicability of urban network theory. The degree of network and city size of 163 Si-Guns in Korea are used to perform an empirical analysis for 2005 and 2010. The result indicates that the effect of city size (based on central place theory) is still larger than the network effect (based on urban network theory). However, the effects are different according to the industrial types. The size-based effectis more efficient in manufacturing sector, whereas the network-based effect is more efficient in service industry. The trend from 2005 to 2010 indicates that there is an increasing pattern in network-based effect and decreasing patternin size-based effect. It is necessary to recognize continual benefit of the sized-based effect, however it is also important to distinguish different characteristics of the functional form by the size and network. The feasibility of the urban network theory is tested in this study with the empirical analysis and recommends the importance of policy implication with recognition of the distinction between size and network-based effects.

• The Korean Journal of Community Living Science
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• v.25 no.4
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• pp.511-531
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• 2014

This study explores supportive and conflictual network structures of elderly single and couple households and analyzes the effects of supportive and conflictual networks on suicidal thoughts by gender and family type. The analysis considered a sample of 522 individuals over the age of 60 who did not live with their adult children. The statistical methods used to analyze data were descriptive statistics, a t-test, a chi-square test and a regression analysis using SPSS WIN 20.0. The results are as follows. First, men and elderly single households had support networks that were smaller than those of women and elderly couple households. The conflictual network of elderly couples households was larger than that of elderly single households. In addition, the larger the network, the more the conflictual was. Second, elderly single households thought about suicide more often than elderly couple households. Third, economic status, the number of adult children, the size of conflictual network and subjective health had considerable influence on suicidal thoughts of elderly single and couple households. The size of the conflictual network had a greater effect on suicidal thoughts of elderly individuals than that of the supportive network. These results have important policy implications for elderly single and couple households.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.2
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• pp.1-8
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• 2019

Network externalities are essentially dynamic in that the value consumers feel about a product is affected by the size of the existing customer base that uses that product. However, existing studies on network externalities analyzed the effects of network externalities in a static way, not dynamic. In this study, unlike previous studies, the impact of network externalities on price competition in a vertically differentiated market is dynamically analyzed. To this end, a two-period duopoly game model was used to reflect the dynamic aspects of network externalities. Based on the game model, the Nash equilibria for price, sales volume, and revenue were derived and numerically analyzed. The results can be summarized as follows. First, if high-end product has strong market power, the high-end product vendor takes almost all benefits of the network externality. Second, when high-end product has strong market power, the low-end product will take over most of the initial sales volume increase. Third, when market power of high-end product is not strong, it can be seen that the effects of network externalities on the high and low-end products are generally proportional to the difference in quality. Lastly, if there exists a strong network externality, it is shown that the presence of low-end product can be more profitable for high-end product vendor. In other words, high-end product vendor has incentive to disclose some technologies for the market entrance of low-end product, even if it has exclusive rights to the technologies. In that case, however, it is shown that the difference in quality should be maintained significantly.

• Korean Business Review
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• v.19 no.2
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• pp.183-206
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• 2006

Recently, the notion of "increasing returns" has been popular not only in academia but also in industries. This notion has been drawn from prior research on network effects, which showed that the market evolution would lock in to a dominant technology. However, the long history of technological change has rarely shown the possibility of lock-in to an inferior technology. How could the market with network effects make transition between incompatible technologies regimes by escaping the lock-in? This paper analyzes the effectiveness of R&D and technological choice to investigate the sources of the dynamic capabilities in the presence of network effects and uncertain technological progress. Why does the market sometimes work against a radical technology, and why, at other times, does the market operate in favor of it? This study is to address this question by modeling the situation of two competing technologies in the presence of network effects. The numerical analysis indicates that the evolution strategy of compatibility is more likely to increase the chance of firm growth when a majority of customers are not power users or when demand for an old technology has been escalated. But when there are a substantial number of power users or when a new technology emerges before such an escalation of demand, the revolution strategy of compelling performance is more likely to be effective. The result suggests a potential mechanism for overcoming the lock-in problem. When the market exhibits some inertia to an obsolete technology, which is reinforced by the increasing customer value with respect to backward compatibility, the survival of a new technology depends on power users. When many power users are cultivated by firms' technological efforts regarding the new technology, the market is less likely to lock into an obsolete technology. Indeed, in the workstation market, where power users characterize much of the demand, innovators like Sun successfully switched to the RISC architecture.

• Development and Reproduction
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• v.16 no.4
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• pp.265-270
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• 2012

Ethanol actions in the amygdala formation may underlie in part the reinforcing effects of ethanol consumption. Previously a physiological phenomenon in the basolateral amygdala (BLA) that is dependent on neuronal network activity, compound postsynaptic potentials (cPSPs) were characterized. Effects of acute ethanol application on the frequency of cPSPs were subsequently investigated. Whole cell patch clamp recordings were performed from identified projection neurons in a rat brain slice preparation containing the amygdala formation. Acute ethanol exposure had complex effects on cPSP frequency, with both increases and decreases dependent on concentration, duration of exposure and age of the animal. Ethanol produces complex biphasic effects on synaptically-driven network activity in the BLA. These findings may relate to subjective effects of ethanol on arousal and anxiolysis in humans.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.13 no.2
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• pp.215-220
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• 2009

LR-WPAN(Low-Rate Wireless Personal Area Network) hewn as IEEE 802.15.4 is considered as one of the most suitable specifications published until now to accomplish USN(Ubiquitous Sensor Network). In this paper we simulate interference effects to other systems if LR-WPAN will be used in 900MHz. In considering the current usage situation of 900MHz frequency band, we can think LR-WPAN shares the frequency band of $908.5{\sim}914MHz$ assigned for RFID/USN. The simulation results of the case of LR-WPAN and RFID/USN sharing the frequency band show that the probability of interference of LR-WPAN to CT1 and RFID is 2.5% and 2.1%, respectively. In order to avoid interference effects to public communications, simulations results show that the protection distance of about loom is needed.

• Asian-Australasian Journal of Animal Sciences
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• v.32 no.4
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• pp.508-518
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• 2019

Objective: This research aimed to determine biological pathways and protein-protein interaction (PPI) networks for 305-d milk yield (MY), 305-d fat yield (FY), and age at first calving (AFC) in the Thai multibreed dairy population. Methods: Genotypic information contained 75,776 imputed and actual single nucleotide polymorphisms (SNP) from 2,661 animals. Single-step genomic best linear unbiased predictions were utilized to estimate SNP genetic variances for MY, FY, and AFC. Fixed effects included herd-year-season, breed regression and heterosis regression effects. Random effects were animal additive genetic and residual. Individual SNP explaining at least 0.001% of the genetic variance for each trait were used to identify nearby genes in the National Center for Biotechnology Information database. Pathway enrichment analysis was performed. The PPI of genes were identified and visualized of the PPI network. Results: Identified genes were involved in 16 enriched pathways related to MY, FY, and AFC. Most genes had two or more connections with other genes in the PPI network. Genes associated with MY, FY, and AFC based on the biological pathways and PPI were primarily involved in cellular processes. The percent of the genetic variance explained by genes in enriched pathways (303) was 2.63% for MY, 2.59% for FY, and 2.49% for AFC. Genes in the PPI network (265) explained 2.28% of the genetic variance for MY, 2.26% for FY, and 2.12% for AFC. Conclusion: These sets of SNP associated with genes in the set enriched pathways and the PPI network could be used as genomic selection targets in the Thai multibreed dairy population. This study should be continued both in this and other populations subject to a variety of environmental conditions because predicted SNP values will likely differ across populations subject to different environmental conditions and changes over time.

• Journal of Information Technology Applications and Management
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• v.22 no.3
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• pp.129-141
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• 2015

The purpose of this study is to provide an explanation for the association between the characteristics of a network and the type of innovation by considering the effect of absorptive capacity. To do so, this study examined the moderating effects of absorptive capacity on the characteristics of network-innovation relationship in a technical-driven venture company. In order to obtain a better understanding about consequences caused by interfirm network, information was obtained from 169 Korean IT venture companies. Results confirmed that the network diversity is positively associated with exploration. Our results also suggested that the network strength is positively associated with exploitation. Finally, we found a positive two-way interaction between absorptive capacity and the network diversity-exploration relationship. Then, we discussed implications and directions for future research.

• Korean Journal of Human Ecology
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• v.21 no.5
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• pp.929-945
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• 2012

This study examined structured social network types and their relationship to quality on life satisfaction of older adults. Respondents were 418 adults aged 60 or older living alone or as couples. The data was analyzed using K-means cluster analysis. Four networks types were identified: diverse, friend-neighbor focused, family focused, and restricted. Life satisfaction was highest for individuals in the diverse network group and lowest for individuals in the restricted network group. Stepwise multiple regression analysis indicated that life satisfaction of the elderly was affected by the diverse network, family focused network, the relationship quality with children, the relationship quality with neighbors, and the relationship quality with relatives. Results suggested that having diverse social network in close proximity is very important in old age and structural network types may have important practical implications for improving the quality of life among the elderly.