network externalities

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network externalities

the increase in the value of a product as more people use it. For example, as the number of people with telephones increases, the value to any individual of owning a telephone is enhanced, since he or she has more people with whom to communicate.
References in periodicals archive ?
Because of this network effect, they theorized, the standard that got a head start, for whatever reason, and no matter how small, would ultimately win the race.
The problem: switching costs and network effects favor the status quo (Luther forthcoming).
Among these research areas, one of the most explored research lines has been directed to examine the network effect on its primary agents (central organization or hub) and secondary agents (partner organizations in the alliance).
Consequently, the user base of the application was too small, which hampered its cross-sided network effect based growth and the power of the platform silo.
The impact of a network effect ends precisely where the need for compatibility ends.
If you're interested in seeing the results of the Network Effect in corporate responsibility, or want to leverage the power of networks for your own corporate initiatives, join us Oct.
He analyzes the core characteristics of broadband networks--dynamism, modularity, network effects, and multisidedness--which are remarkably similar to other information technology industries.
Once the social network and sub-branches are developed and characterized, analysts should identify and highlight persons of interest and separate according to lethal or non-lethal actions as well as which nodes should be positively reinforced for desired network effect.
When asked why they liked Google+ for mobile devices, respondents said Google's wide range of assets -- search, Gmail, YouTube and Android -- together create a powerful network effect when combined with Google+.
Throughout the remainder of fiscal 2011 and beyond, we expect to continue to reap the benefits of our strong network effect by attracting new travellers to our platform and driving continued growth in paid listings.
This is a network effect where every new TNC participant causes a greater increase in the value of the TNC architecture and specifications.
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