Network externalities benefit the user who generates them, all other users, and potential users.

Question

Quizplus · Accepted Answer

Network externalities, also known as network effects, occur when the value of a product or service increases for both existing and new users as more people use it. This means that not only the user who generates them benefits through enhanced utility or value, but all other current users and potential future users also benefit from the increased network size.

Network Externalities Benefit the User Who Generates Them, All Other