Category: 8th Semester

Types of Feedback In network externalities, two types of feedback generally known are of Positive feedback and  Negative feedback Positive feedback Positive feedback makes the strong get stronger and the weak get weaker, leading to extreme outcomes i.e. dominance of the marketplace by a single firm or technology. Positive feedback illustrates that success beget success […]

Cooperation and Compatibility Network economics and positive feedback make cooperation more important than ever. Most companies need to cooperate with others to establish standards and create a single network of compatible users. But as soon as the ink is dry on the standards agreement, these same companies shift gears and compete head to head for […]

Lock-In and Switching Costs Lock-in hinders customers from changing suppliers in response to changes in efficiency, and gives vendors profitable market power – over the same buyer in the case of switching costs (or brand loyalty), or over others with network effects. Switching costs are the costs that a consumer incurs as a result of […]

Informtaion Anything that can be digitized or encoded as a stream of bits (can be expressed in binary form) is information. Text, images, videos, music, digital goods, database, books, magazines, web pages etc. have entertainment and business value unique cost characteristics unique demand characteristics 1.4 FOUNDATIONS OF THE INFORMATION ECONOMY Communication Imparting or exchanging of […]

Hollywood, Defined Hollywood is a physical place, a district of the city of Los Angeles, California. Over the decades however, this name has become synonymous with the American entertainment industry Hollywood was a small community in 1870 and was incorporated as a municipality in 1903. It was consolidated with the city of Los Angeles in […]

 Digital Economy Digital economy refers to an economy that is based on digital computing technologies. The digital  economy is also sometimes called the Internet Economy, the New Economy, or Web Economy. Internet economy is made up of companies directly generating all or some part of their revenues from Internet or Internet-related products and services The […]

Digital rights management (DRM) It is a systematic approach to copy right protection for digital media. The purpose of DRM is to prevent unauthorized redistribution of digital media and restrict the ways consumers can copy content they’ve purchased. DRM products were developed in response to the rapid increase in online piracy of commercially marketed material, […]

(ICTs) are changing the way that citizens are responding to environmental disruptions.In conflict zones it can be dangerous for people to travel and maintain their normal activities.With technologies such as the mobile phone and Internet applications, people can coordinate and communicate Technologies to aid resilient behavior Resilience Ability to quickly recover from difficulties how people […]

Anti Trust Laws and Policy Statutes developed by the U.S. Government to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy Also referred to as “competition laws“ Since the government’s rules inevitably affect industry participants, no executive in the network economy can afford to be ignorant of government information […]