Network effects are present when a product becomes more useful to consumers in proportion to the number of people using it. There are two types:
* Direct network effects
** The strength of direct network effects depends on the number of users. An example is a mobile phone: the more people can be reached mobile, the better
* Indirect network effects
** Similar effects apply to [[Complementary Assets]]. The value of these assets increases as the installed user base increases.

Part of [[Early mover effects]]
bag
businessmodelling_public
created
Sat, 18 Sep 2010 19:02:52 GMT
creator
dirkjan
modified
Sat, 18 Sep 2010 19:02:52 GMT
modifier
dirkjan
tags
Business
M8
Modeling
Term
creator
dirkjan