Network externality-also known as the network effect-describes a situation where the market structure that…
A) aligns around a dominant standard, platform, or product
B) Aligns around the core competitors
C) Reflects the main links in the network
D) Represents a series of links to the node

Question

Quizplus · Accepted Answer

Network externality occurs when a market structure is dominated by a particular standard, platform, or product, that then attracts more users. As more people adopt the dominant choice, the value of that choice increases for all users. This creates a self-reinforcing cycle where the dominant choice becomes even more dominant, and competitors struggle to gain traction.

Network Externality-Also Known as the Network Effect-Describes a Situation Where