Disetronic dominates the market for insulin pumps for diabetics.The more physicians prescribe it for patients,the more complementary goods are made for it.This is an example of "network externalities."

Question

Quizplus · Accepted Answer

Network externalities occur when the value of a product or service increases as more people use it. In this case, as more physicians prescribe Disetronic insulin pumps, more complementary goods (such as accessories or software) are developed for it, making it even more valuable for patients who use it.

Disetronic Dominates the Market for Insulin Pumps for Diabetics