Network effects were a central theme in the arguments of Theodore Vail, the first post-patent president of Bell Telephone, in gaining a monopoly on US telephone services. In 1908, when he presented the concept in Bell's … See more

Network economics refers to business economics that benefit from the network effect. This is when the value of a good or service increases … See more

If some existing technology or company whose benefits are largely based on network effects starts to lose market share against a challenger such as a disruptive technology or open standards based competition, the benefits of network effects will reduce for the … See more

Interoperability has the effect of making the network bigger and thus increases the external value of the network to consumers. Interoperability achieves this primarily by increasing potential connections and secondarily by attracting new participants to … See more

Critical mass
In the early phases of a network technology, incentives to adopt the new technology are low. After a certain number of people have … See more

Negative network externalities, in the mathematical sense, are those that have a negative effect compared to normal (positive) network effects. Just as positive network externalities (network effects) cause positive feedback and exponential growth, … See more

Product compatibility is closely related to network externalities in company's competition, which refers to two systems that can be … See more