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Strategic Economics of Network Industries
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Authors: Hans Gottinger (STRATEC, Germany) 
Book Description:
This text will be of interest to policy makers, industry consultants and students of industrial economics and management alike who feel attracted and pay attention to strategic and structural elements of network economies. The book is also designed as a text for a course in business strategy and a supplementary text for industrial organization. In contrast to strategy texts that tend to do a comprehensive covering of descriptive material, the author identifies and focus on specific issues that offer analytical insights and have applications in industry analysis. The selection of the material springs from academic and consultancy work in ICT related network industries. The central theme is the interplay of competition and cooperation along vertical and horizontal industry lines. This forms the core base of business strategy relating to the growth of business and complementary activities through innovation, mergers and related strategic choices.
In highly competitive technological industries new challenges and opportunities are arising in the new product development arena. Driven by global markets, global competition, the global dispersion of scientific/engineering talent, and the advent of new information and communication technologies (ICT) a new vision of product development is that of highly disaggregated, distributive process with people and organizations spread throughout the world. At the same time products are becoming increasingly complex requiring numerous engineering decisions to bring them to market. Competitive pressures mean that 'time to market' has become a key to new product success. However, at the same time it is important to keep the innovation and quality dimensions of the new product at their optimal level. Many high technology industries are characterized by positive network externalities. Firms essentially compete and cooperate on R&D and the production of goods and services that share a network. Some models of competition contain special features that apply equally well to network markets. One is the uncertainty in technological development or uncertainty in the realization of a firm's R&D effort. The other is the dynamic nature of price competition between firms in the presence of network effects.

Coverage includes:
1. High Speed Technology Competition (HSTC), 2. Vertical Competition and Outsourcing in a Supply Chain (VCOSC) 3. Supply-Chain Coopetition (SCOOP), 4. Cooperative R&D, Collusion and High Tech Competition (COOP) 5. R&D Cooperation with Product Differentiation (TCRDCOOP), 6. Competition in Network Markets (CNM), 7. Open Source Technologies (OST), 8. Increasing Returns Mechanism (IRM), 9. Internet Competition (IC)

Table of Contents:

Introduction and Overview

1. High Speed Technology Competition (HSTC)

1.1 Introduction
1.2 A Differential Game Formulation
1.3 A Sequential Differential Game between Two Competing Firms
1.4 Analysis of the Model and Discussion
1.5 Asymmetries in Firm Capabilities
1.6 Conclusions and Extensions

2. Vertical Competition and Outsourcing in a Supply Chain (VCOSC)
2.1 Introduction
2.2 Differential Game Formulation
2.3 Analysis of the Model
2.4 Equilibrium Results
2.5 Observations and Discussions

3. Supply-Chain Coopetition (SCOOP)
3.1 Introduction
3.2 A Differential Game Model
3.3 Nature of Games
3.4 Analysis of the Model
3.5 Propositions
3.6 Discussion

4. Cooperative R&D, Collusion and High Tech Competition (COOP)
4.1 Introduction
4.2 Model
4.3 Two Stage Model
4.4 Three Stage Model
4.5 Conclusions

5. R&D Cooperation with Product Differentiation (TCRDCOOP)
5.1 Introduction
5.2 A Review of Technological Competition and Market Structure
5.3 A Simple Model
5.4 First Period Competition
5.5 Interperiod Competition
5.6 Notes on Cooperative R&D in a Competitive Market
5.7 Conclusions

6. Competition in Network Markets (CNM)
6.1 Introduction
6.2 Market Histories
6.3 Asymmetry and Market Evolution
6.4 Modelling Technology Racing in a Network
6.5 Conclusions and Extensions

7. Network Economies for Open Source Technologies (OST)
7.1 Introduction
7.2 Patenting, Licensing and Open Source Technologies
7.3 Network Competition under Licensing
7.4 Equilibrium Licensing
7.5 Conclusions and Extensions

8. Competition in Increasing Returns Mechanism (IRM)
8.1 Introduction
8.2 Supply-Side Scale Economies
8.3 Schumpeterian Mechanism
8.4 Increasing Returns and Ergodic Markets
8.5 Technological Competition under Uncertainty and Inertia
8.6 Standards and Increasing Returns
8.7 Network Extermanities
8.8 A Summary on Increasing Returns in Industrial Competition
8.9 Increasing Returns, Structural Change and Development Paths: An Example
8.10 Conclusions: Increasing Returns Mechanisms and Technological Competition

9. Network Economies Internet Competition (IC)
9.1 Introduction
9.2 Internet Resources
9.3 Quality of Service Parameters
9.4 The Rationale of Economic Models in Networking
9.5 Modelling Approaches
9.6 Network Economy
9.7 Equilibrium Price and Convergence
9.8 Examples of Two Agents and One Supplier
9.9 Conclusions


      Business Economics in a Rapidly-Changing World
   Binding: Hardcover
   Pub. Date: 2009 4th Quarter
   Pages: 213 pp.
   ISBN: 978-1-60741-345-5
   Status: AV
Status Code Description
AN Announcing
FM Formatting
PP Page Proofs
FP Final Production
EP Editorial Production
PR At Prepress
AP At Press
AV Available
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Strategic Economics of Network Industries