The Reflection Problem in Network Effect Estimation

This paper discusses the empirical identification of network effects in light of the reflection problem of Manski. I argue that models of indirect network effects present reasonable exclusion restrictions to address the challenges of the reflection problem.

[1]  J. Hausman Valuation of New Goods Under Perfect and Imperfect Competition , 1994 .

[2]  Neil Gandal,et al.  The Dynamics of Technological Adoption in Hardware/Software Systems , 1997 .

[3]  Catherine Tucker,et al.  Identifying Formal and Informal Influence in Technology Adoption with Network Externalities , 2008, Manag. Sci..

[4]  Ying Fan Ownership Consolidation and Product Characteristics: A Study of the US Daily Newspaper Market , 2013 .

[5]  David S. Evans,et al.  DEFINING ANTITRUST MARKETS WHEN FIRMS OPERATE TWO-SIDED PLATFORMS , 2005 .

[6]  Matthew T. Clements,et al.  Indirect Network Effects and the Product Cycle: Video Games in the U.S., 1994-2002 , 2004 .

[7]  M. Sobel,et al.  Identification Problems in the Social Sciences. , 1996 .

[8]  Matthew T. Clements,et al.  Indirect Network Effects and the Product Cycle: Video Games in the U.S., 1994-2002 , 2004 .

[9]  Marc Rysman,et al.  Measuring Network Effects in a Dynamic Environment , 2010 .

[10]  E. Weyl,et al.  A Price Theory of Multi-Sided Platforms , 2009 .

[11]  Harikesh S. Nair,et al.  Measuring marketing-mix effects in the 32/64 bit video-game console market , 2009 .

[12]  Harikesh S. Nair,et al.  Measuring Marketing-Mix Effects in the Video-Game Console Market , 2007 .

[13]  Marc Rysman,et al.  Competition between Networks: A Study of the Market for Yellow Pages , 2002 .

[14]  C. Manski Identification of Endogenous Social Effects: The Reflection Problem , 1993 .

[15]  Robin S. Lee Vertical Integration and Exclusivity in Platform and Two-Sided Markets , 2013 .

[16]  Jonathan Sallet,et al.  Multisided Platforms and Antitrust Enforcement , 2018 .

[17]  Daniel Björkegren The Adoption of Network Goods: Evidence from the Spread of Mobile Phones in Rwanda , 2015, The Review of Economic Studies.

[18]  L. Filistrucchi,et al.  Estimating Market Power in a Two-Sided Market: The Case of Newspapers , 2005 .

[19]  G. Gowrisankaran,et al.  Network Externalities and Technology Adoption: Lessons from Electronic Payments , 2002 .

[20]  Ulrich Kaiser,et al.  Price structure in two-sided markets: Evidence from the magazine industry , 2006 .

[21]  J. Angrist,et al.  The Perils of Peer Effects , 2013 .