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Defining strategies to win in the Internet market

Author

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  • López, Luis
  • Sanjuán, Miguel A.F.

Abstract

This paper analyzes a model for the competition dynamics of web sites in the Internet, based on the Lotka–Volterra competition equations. This model shows the well known appearance of a winner-take-all characteristic and is based in the nonvalidity of traditional offer and demand equilibrium theory of these kinds of markets. From the stability analysis of the model, we establish a series of rules which are useful for defining strategies in the Internet market. One of the most important results that emerge from this simple model is the appearance of some unexpected phenomena related to the collaboration and competition between sites.

Suggested Citation

  • López, Luis & Sanjuán, Miguel A.F., 2001. "Defining strategies to win in the Internet market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 301(1), pages 512-534.
    • Handle: RePEc:eee:phsmap:v:301:y:2001:i:1:p:512-534
    DOI: 10.1016/S0378-4371(01)00388-0
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    References listed on IDEAS

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    1. Sebastian M. Maurer & Eytan Adar & Bernardo A. Huberman, 2000. "The Competitive Dynamics Of Web Sites," Computing in Economics and Finance 2000 357, Society for Computational Economics.
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    Citations

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    Cited by:

    1. Wang, Yuanshi & Wu, Hong, 2004. "Dynamics of a cooperation–competition model for the WWW market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 339(3), pages 609-620.
    2. Wang, Yuanshi & Wu, Hong, 2006. "Dynamics of a macroscopic model characterizing mutualism of search engines and web sites," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(2), pages 537-550.
    3. Gajic, Nenad & Budinski-Petkovic, Ljuba, 2013. "Ups and downs of economics and econophysics — Facebook forecast," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(1), pages 208-214.
    4. Ren, Yawei & Yang, Deli & Diao, Xinjun, 2010. "Market segmentation strategy in internet market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(8), pages 1688-1698.
    5. Jiang, Jifa & Cheng, Zhixin, 2006. "The complete strategic classification for a cooperation–competition model in the WWW market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(2), pages 527-536.
    6. Pao, Hsiao-Tien & Fu, Hsin-Chia, 2015. "Competition and stability analyses among emissions, energy, and economy: Application for Mexico," Energy, Elsevier, vol. 82(C), pages 98-107.
    7. Wan, Xiaoji & Deng, Guishi & Bai, Yang & Xue, Shaowei, 2012. "The influence of learning and updating speed on the growth of commercial websites," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(15), pages 4018-4030.
    8. Neokosmidis, Ioannis & Avaritsiotis, Nikolaos & Ventoura, Zoe & Varoutas, Dimitris, 2015. "Assessment of the gap and (non-)Internet users evolution based on population biology dynamics," Telecommunications Policy, Elsevier, vol. 39(1), pages 14-37.

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    2. Wang, Yuanshi & Wu, Hong, 2004. "Dynamics of a cooperation–competition model for the WWW market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 339(3), pages 609-620.
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