Generalized Network Externality Function

In this work, we focus on the development of mathematical modeling of network externality processes. The introduction of the generalized network externality function provides a unified source of a tool for developing and analyzing the planning, policy and performance of the network externality process and network goods/services in a systematic way. This leads to fulfill all existing network externality assumptions as special cases. We study its properties and applications. This study provides quantitative descriptions, parametric representations of attributes and sensitivity analysis of network externality processes. In particular, parametric variations characterize planning, policy and performance for network goods. Furthermore, by using the US banking asset and deposit time series data sets and statistical methods, the dynamic model of network externality of the US banking asset with respect to the normalized US banking deposit as the financial market share is developed to illustrate the concept of generalized network externality process.