How Does a Network Externality Serve as a Barrier to Entry

question 121

Essay

How does a network externality serve as a barrier to entry? Is this barrier surmountable? Explain.

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Definitions:

Direct Confrontation

A form of communication where individuals address issues or conflicts openly and directly.

Majority Groups

Social or demographic groups that represent the largest portion of the population in a given society, often holding significant power or influence.

Competition Approach

A business strategy that focuses on outperforming competitors by developing a competitive advantage through factors like cost, product, or service.

Assertiveness

The quality of being self-assured and confident without being aggressive, in the context of communicating one's needs and opinions.