Network economics
Encyclopedia
Network economics refers to business economics that benefit from the network effect
. This is when the value of a good or service increases when others buy the same good or service. Examples are website such as EBay
, or iVillage
where the community comes together and shares thoughts to help the website become a better business organization.
In sustainability
, network economics refers to multiple professionals (architects, designers, or related businesses) all working together to develop sustainable products and technologies. The more companies are involved in environmentally friendly production, the easier and cheaper it becomes to produce new sustainable products. For instance, if no one produces sustainable products, it is difficult and expensive to design a sustainable house with custom materials and technology. But due to network economics, the more industries are involved in creating such products, the easier it is to design an environmentally sustainable building.
Another benefit of network economics in a certain field is improvement that results from competition and networking within an industry.
Network effect
In economics and business, a network effect is the effect that one user of a good or service has on the value of that product to other people. When network effect is present, the value of a product or service is dependent on the number of others using it.The classic example is the telephone...
. This is when the value of a good or service increases when others buy the same good or service. Examples are website such as EBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
, or iVillage
IVillage
iVillage, Inc. is a media company that is owned by NBCUniversal. The site focuses on categories targeted at women, including Food, Health, Entertainment, Family, Beauty & Style. Additional businesses and brand extensions within iVillage Networks include iVillage UK, NBC Digital Health Network,...
where the community comes together and shares thoughts to help the website become a better business organization.
In sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
, network economics refers to multiple professionals (architects, designers, or related businesses) all working together to develop sustainable products and technologies. The more companies are involved in environmentally friendly production, the easier and cheaper it becomes to produce new sustainable products. For instance, if no one produces sustainable products, it is difficult and expensive to design a sustainable house with custom materials and technology. But due to network economics, the more industries are involved in creating such products, the easier it is to design an environmentally sustainable building.
Another benefit of network economics in a certain field is improvement that results from competition and networking within an industry.
External links
- Network Economics: An Introduction by Anna NagurneyAnna NagurneyAnna Nagurney is a Ukrainian-American mathematician, economist, educator and author in the field of Operations Management. Nagurney holds the John F. Smith Memorial Professorship in the Isenberg School of Management at the University of Massachusetts at Amherst....
of the Isenberg School of ManagementIsenberg School of ManagementThe Isenberg School of Management is the business school at the University of Massachusetts Amherst. Founded in 1947 as the School of Business Administration, Isenberg assumed its present name in 1997 in honor of alumnus and benefactor Eugene M. Isenberg...
at University of MassachusettsUniversity of MassachusettsThis article relates to the statewide university system. For the flagship campus often referred to as "UMass", see University of Massachusetts Amherst...
- Supply chain network economics by Anna NagurneyAnna NagurneyAnna Nagurney is a Ukrainian-American mathematician, economist, educator and author in the field of Operations Management. Nagurney holds the John F. Smith Memorial Professorship in the Isenberg School of Management at the University of Massachusetts at Amherst....