What advice would you give to a firm that wants to exploit network effects?
A) Price your products high in the early stages of the market's development.
B) Be a first mover and thus establish the technical standard.
C) Create incentives for other firms to develop complementary products.
D) Develop more killer applications than do competitors.
E) Ask customers to bear the switching costs.

Question

Quizplus · Accepted Answer

Creating incentives for other firms to develop complementary products can help a firm exploit network effects by increasing the value of its own product or service.

What Advice Would You Give to a Firm That Wants