Cameron joins a sailing club. This generates network externalities for all
A) members, including Cameron, and all potential users.
B) potential users.
C) members, except for Cameron.
D) members, except for Cameron, and all potential members.

Question

Quizplus · Accepted Answer

Network externalities occur when the value of a product or service increases for both existing and potential users as more people use it. When Cameron joins a sailing club, he increases the network's value not only for himself by gaining access to the club's resources and community but also for existing members by contributing to the community and potentially bringing new skills or connections. Potential users also benefit from the network externality because the club becomes more valuable as its membership grows, offering a larger community and potentially more resources or events.

Cameron Joins a Sailing Club