36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the (2003)
Big Island, Hawaii
Jan. 6, 2003 to Jan. 9, 2003
Tim Weitzel , J. W. Goethe University
Daniel Beimborn , J. W. Goethe University
Wolfgang König , J. W. Goethe University
Networks utilizing modern communication technologies can offer competitive advantages to those using them wisely. But due to the existence of network effects, planning and operating networks is difficult. In this paper, the strategic situation of individual agents deciding on network participation is analyzed. A systematic equilibrium analysis using computer-based simulations reveals principal solution scenarios for network agents and shows that network cooperation problems might frequently be not as difficult to resolve as often feared. In particular, strategic situations are identified showing that a majority of individuals might be better off getting the optimal solution from a central principal and that in many cases simple information intermediation can solve the start-up problem notorious in network economics.
D. Beimborn, T. Weitzel and W. König, "An Individual View on Cooperation Networks," 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the(HICSS), Big Island, Hawaii, 2003, pp. 178c.