This book (published earlier in 2001) was recently recommended by Phil Agre of UCLA. Worth a look. Only $16 at Amazon.

Overview: "Networks are fastest-growing components in most industries. Network industries include the Internet, e-mail, telephony, computer hardware and software, music and video players, and service operations in businesses overseas, banking, law, and airlines. Author Oz Shy conveys the essential features of how strategic interactions among firms are affected by network activity, and how social interaction influences consumers' choices of products and services."

Hal Varian of UCB says, "At last: a definitive textbook on the economic theory of high technology! Up until now the literature on network economics has only been available in advanced journals. Oz Shy has managed to package it beautifully so that it is accessible to advanced undergraduates and beginning graduate students."

For a snapshot of the book, take a look at the 42 pages of lecture notes for the author's graduate-level course (for which this book is the course text). They are online in PDF at

http://econ.haifa.ac.il/~ozshy/gradnet6.pdf