Asked by Haley Adams on May 19, 2024
Verified
List three examples of products for which there are significant network externalities.Explain why you believe network externalities are present in each case.
Network Externalities
The effect that an additional user of a good or service has on the value of that product to others, often positive in the case of products that become more valuable as more people use them.
Significant
Importance in a statistical or substantive sense, often used to describe findings that are not likely to be due to chance.
- Comprehend the importance of network effects in the context of economic models and their influence on the formulation of pricing strategies.
- Analyze market conditions and strategies in different scenarios involving goods with network externalities.
Verified Answer
ZR
Zohaib RehmanMay 19, 2024
Final Answer :
Computer operating systems, word processors, spreadsheets, DVDs.
Learning Objectives
- Comprehend the importance of network effects in the context of economic models and their influence on the formulation of pricing strategies.
- Analyze market conditions and strategies in different scenarios involving goods with network externalities.