Network Externalities Can

question 34

Multiple Choice

Network externalities can:

• A) create diffuse profits for producers.
• B) decrease the benefits of a winner-take-all industry.
• C) lead to the adoption of inefficient technologies.
• D) increase the value of new technologies.

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Definitions:

Thorndike

An American psychologist who developed the law of effect, which states that behaviors followed by pleasing consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.

Milgram

Refers to Stanley Milgram, a psychologist known for his experiments on obedience, demonstrating people's willingness to follow authority figures' orders, even to the point of harming others.

Determinism

The philosophical theory that all events, including moral choices, are completely determined by previously existing causes.

Structuralism

An approach in psychology that suggests understanding human culture and psychology can be achieved by analyzing underlying structures in cultural and cognitive systems.