Unlike the case for non-network goods, network goods sometimes do not reach equilibrium.

Question

Quizplus · Accepted Answer

Network goods often exhibit network externalities, where the value of the good to a user increases with the number of other users. This can lead to situations where these goods do not reach equilibrium in the traditional sense, as their value and adoption can be highly dependent on expectations, coordination, and critical mass, leading to multiple potential equilibrium points or dynamic changes in adoption over time.

Unlike the Case for Non-Network Goods, Network Goods Sometimes Do