Day 229 of 365
August 17
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Economics The Economics of Network Effects
Network effects occur when a product becomes more valuable as more people use it - like telephones, social networks, and email. This explains why 'winner-take-all' markets emerge in technology. First movers with network effects can become nearly impossible to displace.
💡 Did you know?
Metcalfe's Law states that a network's value grows proportionally to the square of its users!
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