Where they exist, network externalities are critical phenomena because
A)they create positive feedback which often leads to a winner-takes-all situation.
B)they create a winner-takes-all situation which is unfair from a competition standpoint.
C)technological innovations tend to be resilient.
D)governments are more and more concerned with supporting networks.

Question

Quizplus · Accepted Answer

Network externalities create positive feedback, meaning that as more people use a certain product or service, its value increases for all users. This often leads to a winner-takes-all situation because the more dominant option becomes more attractive to new users, further increasing its value and popularity. This phenomenon is critical because it can have significant implications for markets and competition.

Where They Exist, Network Externalities Are Critical Phenomena Because