• Title/Summary/Keyword: indirect network effect

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Indirect Network Effect and Spillover Effect in Food Delivery Platforms

  • GONG, LEE
    • KDI Journal of Economic Policy
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    • v.44 no.4
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    • pp.25-42
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    • 2022
  • I analyze how the food delivery market's indirect network effect and spillover effect influence the spread of food delivery platforms in different counties. This study finds that there is a positive local indirect network effect and a positive spillover effect in the adoption of the platform by examining the food delivery platform market in South Korea as of 2020. As food delivery platforms secure consumers who use them, more restaurants on the other side of a two-sided market adopt such platforms (indirect network effect). The spillover effect would allow other restaurants in a region to become more likely to adopt food delivery platforms if there are a greater number of restaurants in the region that use such platforms. This study contributes to the comprehension of technology diffusion and the marketing strategies of platform providers by providing empirical evidence of both effects.

Market Power of Internet Portals with Direct and Indirect Network Externality (직·간접 네트워크 외부성하에서 인터넷포털 기업의 시장력 분석)

  • Jin, Yangsoo
    • KDI Journal of Economic Policy
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    • v.31 no.2
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    • pp.87-126
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    • 2009
  • In the internet portal industry, the indirect network externality from portal visitors to advertisers and the direct network externality among portal visitors have important implications for anti-trust policies. This paper examines the existence and the magnitude of the direct/indirect network externality in the Korean internet portal industry and measures its effect on the market power of the internet portals. The results show that the direct/indirect network externality is substantive in the industry hence the market share of a portal in the visitors' side has the 'leverage' effect on its market power in the advertisers' side.

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The effects of developmental network characteristics and develomental functions on career identity (경력정체성에 대한 개발지원관계망 특성과 개발지원기능의 효과 분석)

  • Chang, Jihyun
    • Knowledge Management Research
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    • v.17 no.3
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    • pp.23-44
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    • 2016
  • This study examined the cause-and-effect relationships among developmental network characteristics, developmental functions, and career identity. The study analyzed the data of employees with more than two years of experience and a college degree or over qualifications, from domestic companies. For analysis, the structural equation model was applied. Most of all, it was substantiated that the structural relationships among the developmental network characteristics, developmental functions, and career identity. The specific results were as follows. First, tie strength had a positive effect on all of developmental functions but psychosocial support mediated the relationship between the tie strength and career identity. Second, an indirect relationship between indicators of network diversity and identity was not found or the indirect relationship was very weak.

Relationships Among Emotional Support from Social Network, Ego-Resiliency, and Role Conflict of Teachers in Kindergartens and Day Care Centers (유아교육기관 교사의 사회적 정서 지지와 자아탄력성 및 역할갈등간 관계)

  • Min, Ha-Yeoung;Gwon, Gi-Nam
    • Journal of Families and Better Life
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    • v.27 no.5
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    • pp.91-99
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    • 2009
  • This study investigates the relationships among emotional support from social network, ego-resiliency, and role conflict of teachers in kindergartens and day care centers. The subjects were 192 teachers who worked in kindergartens or child care centers in Daegu and Gyeongbuk Province. Questionnaires, which require self-report by teachers, were used to investigate the emotional support from social network, ego-resiliency, and role conflict. The collected data were analyzed by Pearson's correlation, single and multiple regressions, using SPSS Win 15.0. The results are as follows. (1) Emotional support from social network and ego-resiliency was negatively associated with the role conflict of teachers in kindergartens and day care centers. (2) Emotional support from social network was positively associated with ego-resiliency. (3) Emotional support from social network partly exerted indirect effects on role conflict mediated by ego-resiliency. But direct effect of emotional support from social network on role conflict was more than the indirect effect. These results indicate that a higher level of emotional support from social network is more likely to lower role conflict of teachers.

Two-Sided Market and Entry (양면시장에서의 진입가능성 연구)

  • Jang, Dae-Chul;Jung, Young-Jo;Ahn, Byong-Hun
    • Journal of the Korean Operations Research and Management Science Society
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    • v.31 no.4
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    • pp.105-123
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    • 2006
  • Previous research on two-sided markets has, for the most part, concentrated on indirect network externalities between buyers alto sellers. This paper considers direct competition effect among sellers and among buyers as well as indirect network externalities. We develop an analytic model of C2C e-marketplaces and examine whether a monopolistic incumbent could successfully deter new entry into its market. We find that the effect of the number of sellers or buyers on the price of goods depends on whether sellers have decided to sell the goods using an auction or fixed pricing rule and on the characteristics of the goods. We argue that when the effect of the number of sellers on the price of goods is significantly larger than that of buyers, there is a high possibility of entry. In particular, we show that entry becomes more difficult to deter as fixed-price format is adopted more frequently or the proportion of collectables is relatively low.

공급사슬내 협업환경과 기업의 직.간접 성과

  • O, Se-Gu
    • Proceedings of the Korea Database Society Conference
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    • 2010.06a
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    • pp.235-247
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    • 2010
  • Introduction of ICE(Integrated Collaboration Environment) has a great effect on corporate performance. In particular, it is expected that information sharing and collaboration among transaction partners will be an important factor which mediates ICE and its performance. Under such a background, this research intends to identify the influence of ICE by manufacturing industry on corporate performance through role of the parameter of information sharing and collaboration. The result of this research may be summed up as follows: ICE promotes information sharing and collaboration among enterprises, it accelerates integration of supply chain network among enterprises and cooperation. In particular, ICE has a great effect on information sharing. And information sharing has a direct effect on collaboration and performance. However, when we classify corporate performance into the "performance due to introduction", which is direct performance, and the "overall performance", which is indirect performance, the result of this research is as follows: information sharing has a great effect on the performance due to introduction, but does not have a meaningful effect on indirect performance. On the other hand, collaboration does not have any effect on the performance due to introduction, but has a meaningful effect on the overall performance, which is indirect performance. It is necessary to study and analyze additional this result in future.

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The Relationships among Maternal Social Networks, Maternal Expectation for Their Own Children and Self-esteem and Emotional Intelligence of Children (어머니의 사회관계망, 자녀에 대한 기대와 아동의 자아존중감 및 정서지능의 관계)

  • Park, Young-Yae;Won, Hyo-Jong
    • Korean Journal of Human Ecology
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    • v.12 no.5
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    • pp.713-735
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    • 2003
  • The purpose of this study was to investigate the effects of the characteristics of maternal social networks on maternal expectation for their own children to examine the path that social networks had an effect on the self-esteem and the emotional intelligence of children through maternal expectation for their own children. The data used in this study were collected from 524 fourth to sixth graders and their mothers residing in Daejeon using structured questionnaire. The major findings of the study were as follows : (1) Among social network characteristics, proportion of friends and neighbors, proximity, direction and interference had a negative effect, and proportion of mothers of child's friends, frequency of contact, intimacy, emotional support, service support had a positive effect on maternal expectation for their own children. (2) Among social network characteristics, proportion of mothers of child's friends had a direct effect and proportion of friends, neighbors, and mothers of child's friends, proximity, frequency of contact, intimacy, direction, emotional support, service support, and interference had an indirect effect on children's emotional intelligence through maternal expectation for their own children. (3) Among social network characteristics, proportion of kin and mothers of child's friends, intimacy, service support, material support and interference had a direct effect, and proportion of neighbors and mothers of child's friends, proximity, frequency of contact, direction, service support had an indirect effect on children's emotional intelligence through maternal expectation for their own children.

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Measuring the Impact of Competition on Pricing Behaviors in a Two-Sided Market

  • Kim, Minkyung;Song, Inseong
    • Asia Marketing Journal
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    • v.16 no.1
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    • pp.35-69
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    • 2014
  • The impact of competition on pricing has been studied in the context of counterfactual merger analyses where expected optimal prices in a hypothetical monopoly are compared with observed prices in an oligopolistic market. Such analyses would typically assume static decision making by consumers and firms and thus have been applied mostly to data obtained from consumer packed goods such as cereal and soft drinks. However such static modeling approach is not suitable when decision makers are forward looking. When it comes to the markets for durable products with indirect network effects, consumer purchase decisions and firm pricing decisions are inherently dynamic as they take into account future states when making purchase and pricing decisions. Researchers need to take into account the dynamic aspects of decision making both in the consumer side and in the supplier side for such markets. Firms in a two-sided market typically subsidize one side of the market to exploit the indirect network effect. Such pricing behaviors would be more prevalent in competitive markets where firms would try to win over the battle for standard. While such qualitative expectation on the relationship between pricing behaviors and competitive structures could be easily formed, little empirical studies have measured the extent to which the distinct pricing structure in two-sided markets depends on the competitive structure of the market. This paper develops an empirical model to measure the impact of competition on optimal pricing of durable products under indirect network effects. In order to measure the impact of exogenously determined competition among firms on pricing, we compare the equilibrium prices in the observed oligopoly market to those in a hypothetical monopoly market. In computing the equilibrium prices, we account for the forward looking behaviors of consumers and supplier. We first estimate a demand function that accounts for consumers' forward-looking behaviors and indirect network effects. And then, for the supply side, the pricing equation is obtained as an outcome of the Markov Perfect Nash Equilibrium in pricing. In doing so, we utilize numerical dynamic programming techniques. We apply our model to a data set obtained from the U.S. video game console market. The video game console market is considered a prototypical case of two-sided markets in which the platform typically subsidizes one side of market to expand the installed base anticipating larger revenues in the other side of market resulting from the expanded installed base. The data consist of monthly observations of price, hardware unit sales and the number of compatible software titles for Sony PlayStation and Nintendo 64 from September 1996 to August 2002. Sony PlayStation was released to the market a year before Nintendo 64 was launched. We compute the expected equilibrium price path for Nintendo 64 and Playstation for both oligopoly and for monopoly. Our analysis reveals that the price level differs significantly between two competition structures. The merged monopoly is expected to set prices higher by 14.8% for Sony PlayStation and 21.8% for Nintendo 64 on average than the independent firms in an oligopoly would do. And such removal of competition would result in a reduction in consumer value by 43.1%. Higher prices are expected for the hypothetical monopoly because the merged firm does not need to engage in the battle for industry standard. This result is attributed to the distinct property of a two-sided market that competing firms tend to set low prices particularly at the initial period to attract consumers at the introductory stage and to reinforce their own networks and eventually finally to dominate the market.

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An Analysis of the Impact of Digital Content Usage on Smart TV Usage (디지털 콘텐츠 이용이 스마트TV 이용에 미치는 영향 연구)

  • Lee, Seonmi
    • The Journal of the Korea Contents Association
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    • v.22 no.5
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    • pp.319-326
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    • 2022
  • As digital content services, especially OTT(over-the-top) video services, diffuse rapidly, so do smartTVs. Based on the indirect network effect theory and the complementarity theory, this study explores the relationship between digital content services and smartTV. Using the Media panel dataset, this study analyzes how the usage of digital content service (OTT usage, OTT usage volume, the usage of various OTT service types, and online game/music/education/news service) affects smartTV usage. This study shows that OTT usage and its usage volume is positively associated with smartTV usage, and that the usage of various OTT service types is positively associated with smartTV usage compared with non-OTT users. As for online content services, the usage of online education service is positively associated with smartTV usage while the usage of online news service is associated negatively. These results support the indirect network effect theory and the complementarity theory.

The influence of Social networks and Social support on Depression : for Older Women in Rural area (농촌 여성노인의 사회적 지지망과 사회적지지가 우울에 미치는 융합적인 영향)

  • Kim, Yeon-Jung
    • Journal of the Korea Convergence Society
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    • v.8 no.10
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    • pp.339-349
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    • 2017
  • The purposes of this study were to identify influence of social networks and social support on depression among older women in rural area on agricultural off-season. The sample consisted of 112 women aged 65 years or over who lived in rural areas of Chung-Nam. Some variables related to depression in older women, including depression, social network, social support were measured using reliable instruments. Pathway analysis was used to test the proposed conceptual model designed to explain the direct, indirect and total effect between social networks and social support on depression. Result, direct effect of satisfaction with kin network and instrumental support on depression was found. And indirect effect of network size with kin, satisfaction with kin network on depression was found. Based on these results, it is necessary to develop supportive system to reduce depression and to improve satisfaction with kin network and instrumental support.