A Significant Downside to Network Externalities Is That

question 56

Multiple Choice

A significant downside to network externalities is that

• A) there may be large switching costs to consumers of changing products so that consumers end up using products with inferior technologies.
• B) firms may network with unethical suppliers or distributors.
• C) the costs of hiring celebrity endorsements may be very high.
• D) there may be large switching costs to firms changing technologies.

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Definitions:

Agentic State

Describes a psychological condition in which individuals see themselves as agents executing orders, often leading to reduced responsibility for their actions.

Fundamental Attribution Error

A cognitive bias in which people tend to attribute others' behaviors to their personality or character, rather than to external factors.

Power Tactics

Strategies or methods used by individuals or groups to exert influence or control over others to gain authority or power.

Milgram

Refers to Stanley Milgram, a psychologist known for his groundbreaking research on obedience, demonstrating that people are willing to obey authority figures to the extent of causing harm to others.