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Solution mechanisms and empirical data

  • Tim Weitzel
Part of the Information Age Economy book series (AGEECONOMY)

Abstract

In the previous sections, the implications of the existence of network effects on the decision quality of interdependent agents have been extensively elaborated. For understanding general principles behind standardization processes the framework proposed two extreme institutional settings; one being centralized coordination as a hypothetical benchmark of coordination quality at no agency costs, the other being decentralized coordination with agents acting and reacting according to the ever changing information sets available to them but without engaging in bi- or multilateral deals with their partners so as to accomplish concerted efforts. This gives rise to the question how such activities could contribute to enhancing agents’ decision quality: how can (groups of) agents internalize otherwise unexploited network gains? How to close the standardization gap?

Keywords

Network Effect Standardization Problem Side Payment Electronic Data Interchange True Reporting 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2004

Authors and Affiliations

  • Tim Weitzel
    • 1
  1. 1.Institute of Information SystemsUniversity of FrankfurtFrankfurt (Main)Germany

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