Bronius Neverauskas

IT Market and E-Commerce in Transition Economy: Network Externalities

The article presents the main aspects of interaction between network externalities, IT market, and e-commerce development under conditions of a transition economy. In literature it has often been found that network externalities cause a decrease of what is generally called transaction costs (costs of gathering information, controlling, coordinating transactions). With respect to the decrease of transaction costs, this chapter shows that network externalities are extremely relevant for the Lithuanian IT market.