The Economics of Network Industries [Paperback]

Oz Shy (Author)

Book Description

ISBN-10: 0521805007 | ISBN-13: 978-0521805001 | Publication Date: January 8, 2001

Networks are fastest-growing components in most industries. Network industries include the Internet, e-mail, telephony, computer hardware and software, music and video players, and service operations in businesses overseas, banking, law, and airlines. Oz Shy conveys the essential features of how strategic interactions among firms are affected by network activity, and how social interaction influences consumers' choices of products and services. Oz Shy is on the faculty of economics at the University of Haifa, in Haifa, Israel. His previous book is Industrial Organization: Theory and Applications (MIT Press, 1996).

Editorial Reviews

Review

"[T]he book consists of a vivid presentation of what a network industry is [and is] the best single source for anyone wanting to get acquainted with the state of the art in this field today." Luca Lambertini, University of Bologna, Southern Economic Journal

"At last: a definitive textbook on the economic theory of high technology! Up until now the literature on network economics has only been available in advanced journals. Oz Shy has managed to package it beautifully so that it is accessible to advanced undergraduates and beginning graduate students." Hal Varian, University of California, Berkeley

"Oz Shy offers us in his latest book a very elegant, neat, and simple presentation of what economists have accomplished in the field of network goods. The array of topics covered is impressive: it ranges for the hardware and software industries to bank- and money-related issues. This is a major book edvoted to a major topic. It should be read those students, scholars or decision/policy makers who want to understand something about this new (although sometimes quite old) domain of human activity and academic research." Jacques Thisse, CORE, Belgium

"This valuable book about critical area of growing economic importance, by an author who himself has made significant contributions to the subject, fills a real gap in the market. It should be useful for both advanced undergraduate and graduate classes." Paul Klemperer, Nuffield College, Oxford University

"This valuable book about a critical area of growing economic importance, by an author who himself has made significant contributions to the subject, fills a real gap in the market. It should be useful for both advanced undergraduate and graduate classes." Paul Klemperer, Nuffield College, Oxford University

"Shy has succeeded in simplifying the arguments that economists have been feverishly debating in academic journals in the fields of network industries from telephony to the Internet...of considerable interest to researchers, industry professionals regulators and policymakers seeking a clear and concise explanation of the economics of high technology network industries as well as anyone interested in the Internet browser wars, implications of electronic libraries and publishing or the activities of omnipresent media communications moguls such as Bill Gates or Rupert Murdoch." CBQ

Book Description

This book introduces upper-level undergraduates, graduate students, and researchers to the latest developments in networks, the fastest-growing components in most industries. Network industries include the Internet, e-mail, telephony, computer hardware and software, music and video players, and service operations in the banking, legal, and airlines industries among many others. The book conveys the essential features of how strategic interactions between firms are affected by network activity, as well as covering social interaction and its influence on consumers' choices of products and services.

Product Details

• Paperback: 332 pages
• Publisher: Cambridge University Press (January 8, 2001)
• Language: English
• ISBN-10: 0521805007
• ISBN-13: 978-0521805001
• Product Dimensions: 8.9 x 5.8 x 0.9 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 3.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #584,249 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

31 of 33 people found the following review helpful:

4.0 out of 5 stars Network economics in one solid and compact book, July 12, 2001

By 

Mikko Valimaki (Helsinki, Finland) - See all my reviews

This review is from: The Economics of Network Industries (Paperback)

This is an original academic textbook for network economics. Oz Shy starts the book by making some reasonable claims on his discipline at large: scientific papers in economics are too technical and use unnecessary amounts of calculus. Though the book is very analytical and covers a wide scope of issues, prerequisites are at a considerably low level. Because the book uses game theory and logical reasoning instead of calculus, it is accessible to readers with different backgrounds. This book will be in good use at least with the students of economics and engineering.

The book starts from the basic economics of networks and then analyses various networked industries from hardware to software and airlines to social interactions. Most topics stand separately on their own feet. The book ends with a compact presentation on the used game theoretical concepts as appendices.

Being a texbook in economics, however, does not excuse inaccurate and sometimes clearly misleading use of technical terms. I had serious problems understanding why "software" denotes in this book to all kind of digital content including music and movies. In my mind, the word software is restricted to computer programs and associated materials. Also, building models on some specific technology, Shy continuously leaps over the problem of defining its essential features, which should (or should not) be modeled. Taking definitions of technical terms as given (by Shy) can definitely confuse at least engineering students.

In overall, this book might be best characterized as an academic add-on to the well-known business book "Information Rules" by Carl Shapiro and Hal Varian. With some inaccurancies and perhaps some time-gap to real world applications, it makes a good textbook. Essential parts are timeless and presentation clear.

11 of 15 people found the following review helpful:

2.0 out of 5 stars Buy Gottinger's book instead, August 19, 2003

By A Customer

This review is from: The Economics of Network Industries (Paperback)

This is a very interesting book that covers the full range of network industries - and is in many ways a welcome addition to the literature.

However, I found the pitch of the book to be not quite right. In an attempt to satisfy a student market, the presentation is a little simplistic in places. Although there are IO courses everywhere, there are few solely devoted to network industries - so it is surprising that the publishers risked producing a paperback.

As a consumer, the price of Professor Shy's book is an appealing factor, but I found Hans Gottinger's far more up-to-date, rigorous and analytical book of the same title (Routledge, 2003) more stimulating.