Local Network Effects in the Adoption of a Digital Platform*

Jin Hyuk Kim, Peter Newberry, Liad Wagman, Ran Wolff

Research output: Contribution to journalArticlepeer-review


We examine the extent to which network effects on a digital platform are geographically local. Focusing on the fantasy sports market, we find that the size of a county's existing user base on the platform significantly impacts the number of new adopters in that county, while the size of the user base in nearby counties does not. We also find evidence that network effects are heterogenous across income levels. Guided by these results, we demonstrate that the initial distribution of users across counties can significantly influence the growth of the network over time, and draw implications for optimal seeding strategies.

Original languageEnglish
Pages (from-to)493-524
Number of pages32
JournalJournal of Industrial Economics
Issue number3
StatePublished - Sep 2022
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2022 The Authors. The Journal of Industrial Economics published by The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd.

ASJC Scopus subject areas

  • Accounting
  • General Business, Management and Accounting
  • Economics and Econometrics


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