Which of the following could result in a negative network externality?

Question

Quizplus · Accepted Answer

The snob effect occurs when a product becomes less desirable as more people use it. Congestion occurs when the usefulness of a product decreases as more people use it. Both of these scenarios result in a negative network externality. The bandwagon effect, on the other hand, occurs when a product becomes more desirable as more people use it, and standardization generally has a positive effect on network externalities. Therefore, option D, snob effect and congestion, is the best choice for a negative network externality.

Which of the Following Could Result in a Negative Network