The Economics of Networks: Introduction The Economics of
Networks  1. Introduction2  Network industries play a crucial
role in modern life. The modern economy would be very much
diminished without the transportation, communications,
information, and railroad networks. This essay will analyze the
major economic features of networks. In the course of the
analysis it will become clear that many important non-network
industries share many essential economic features with network
industries. These non-network industries are characterized by
strong complementary relations. Thus, the lessons of networks
can be applied to industries where vertical relations play a
crucial role; conversely, the economic and legal learning
developed in the analysis of vertically-related industries can
be applied to network industries.  Next Section  Previous
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