The Economics of Networks and Digital Platforms

Step into the future of business with this essential guide to the digital economy, where network effects and data-driven strategies are rewriting the rules of success for industry leaders.This textbook comprehensively explores network economics, focusing on digital platforms and ecosystems. It delves into the fundamental principles of network effects, where the value of a service increases as more people use it, and examines various pricing models essential in network-based businesses. Governance is another critical aspect, emphasizing the importance of establishing trust and reliable management practices within digital platforms. By the end of this book, you'll feel confident in your understanding of these complex topics. The book highlights the pivotal role of data in the network economy and keeps you abreast of the latest trends in the network and platform economy. It showcases how these trends, such as the increasing influence of data and network effects, are shaping the future and significantly influencing the present landscape. Key examples include industry giants like Google, Amazon, Facebook, Uber, and Airbnb, which are at the forefront of leveraging network effects and data to dominate their respective markets. This book lets you feel informed and ready to navigate these trends. Designed for students and professionals alike, this textbook combines theoretical foundations with practical insights, making it a valuable resource for understanding the dynamic world of digital platforms. Whether you're studying economics, business, or technology, this book provides the knowledge and tools needed to navigate and succeed in the evolving digital economy.