Handbook on the Economics of the Internet
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Handbook on the Economics of the Internet

Edited by Johannes M. Bauer and Michael Latzer

As the single most important general purpose technology of recent times, the Internet is transforming the organization, competitive structure and business models of the private, the public and non-profit sectors. In 27 original chapters, leading authors discuss theoretical and applied frameworks for the study of the economics of the Internet and its unique economics as a global information and communications infrastructure. They also examine the effects of the Internet on economic transactions (including social production, advertising, innovation, and intellectual property rights), the economics and management of Internet-based industries (including search, news, entertainment, culture, and virtual worlds), and the effects of the Internet on the economy at large.
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Chapter 4: A network science approach to the Internet

Volker Schneider and Johannes M. Bauer


During the past decades considerable progress has been made in developing research methods that are particularly suited to examining network relations in the Internet and their consequences for outcomes such as the diffusion of applications and services, the winner-take-all dynamics of digital markets, and the spread of malware. Social scientists have long recognized the importance of interdependencies among agents in social systems and the need for coordination in an economy with division of labor. Network science provides powerful tools to analyze both topics in innovative ways. It needs to be distinguished from two other emerging fields – Internet science and web science – which share common interests but do not primarily use network science tools. This chapter provides an overview of network science methods and their potential to study the Internet and its economic effects.

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