fbpx Network Effects | Harvard Kennedy School

Additional Authors:

  • Andrei Hagiu
  • David Yoffie

Excerpt

Network Effects. Andrei Hagiu, David B. Yoffie, Cctober 9, 2013, Book Chapter. "Network effects are a key economic and strategic phenomenon in 'new economy' industries. They can, but do not necessarily, lead to market tipping, unless they outweigh customers' benefits from differentiation and are accompanied by high switching and multi-homing costs. Network effects create the possibility for multiple equilibrium market configurations, which are crucially determined by market participants' EXPECTATIONS..." May require purchase or user account. Link Verified October 13, 2014