Network Meltdown: A Legacy of Bad Economics
32 Pages Posted: 13 May 2002
Date Written: April 19, 2002
Why did the dot.coms burn and die? The answer is that they followed the advice given to them by a set of economists preaching that being first to market was the key to success thanks to lock-in effects. I explore these events and this thinking in this paper.
Keywords: network effects, lock-in, dot.coms, ecommerce, internet
JEL Classification: L0, L1, L2
Suggested Citation: Suggested Citation