In the market for network goods, the best product always wins.

Question

Quizplus · Accepted Answer

In the market for network goods, the best product does not always win. The success of a network good depends on network effects, which means that the value of the product increases as more people use it. Therefore, even if a technically superior product exists, if it does not have a large enough user base, it may not succeed in the market. Other factors such as marketing, pricing, and brand recognition can also play a role in the success of network goods.

In the Market for Network Goods, the Best Product Always