A significant downside to network externalities is that
A)there may be large switching costs to consumers of changing products so that consumers end up using products with inferior technologies.
B)firms may network with unethical suppliers or distributors.
C)the costs of using celebrity endorsements may be very high.
D)there may be large switching costs to firms changing technologies.

Question

Quizplus · Accepted Answer

Network externalities can lead to high switching costs for consumers who want to switch to a different product with better technology or features. This can result in consumers being "locked-in" to inferior products or technologies, reducing their overall satisfaction and welfare.

A Significant Downside to Network Externalities Is That