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Value added is a term in financial economics for calculating the difference between market value of a product or service, and the sum value of its constituents. It is relatively expressed to the supply-demand curve for specific units of sale. [ 1 ]
To be able to gain a license for telecommunication service provision to customers, a private business had to "add value" to the communications line in order to be a distinguishable service. Therefore, the notion of "value-added network services" was established to allow for operation of such private businesses as an exemption from state control.
In economics, Beckstrom's law is a model or theorem formulated by Rod Beckstrom.It purports to answer "the decades-old question of 'how valuable is a network'", and states in summary that "The value of a network equals the net value added to each user’s transactions conducted through that network, summed over all users."
Supply chain systems configure value for those that organize the networks. Value is the additional revenue over and above the costs of building the network. Co-creating value and sharing the benefits appropriately to encourage effective participation is a key challenge for any supply system.
The balancing item of the accounts is value added, which is equal to GDP when expressed for the whole economy at market prices and in gross terms; income accounts , which show primary and secondary income flows—both the income generated in production (e.g. wages and salaries) and distributive income flows (predominantly the redistributive ...
Value network analysis (VNA) is a methodology for understanding, using, visualizing, optimizing internal and external value networks and complex economic ecosystems. [ 1 ] [ 2 ] The methods include visualizing sets of relationships from a dynamic whole systems perspective.
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In economics, a network effect (also called network externality or demand-side economies of scale) is the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products.