The natural state of a market where network effects are present is for there to be intense competition between several rivals.

Question

Quizplus · Accepted Answer

The natural state of a market where network effects are present is for one dominant player to emerge and enjoy a significant advantage over its rivals. This is because the value of the product or service increase as more people use it, creating a barrier for others trying to enter the market. As a result, competition tends to be less intense in these types of markets.

The Natural State of a Market Where Network Effects Are