Where They Exist, Network Externalities Are Critical Phenomena Because

question 39

Multiple Choice

Where they exist, network externalities are critical phenomena because

• A)they create positive feedback which often leads to a winner-takes-all situation.
• B)they create a winner-takes-all situation which is unfair from a competition standpoint.
• C)technological innovations tend to be resilient.
• D)governments are more and more concerned with supporting networks.

---

Definitions:

Illusion of Invulnerability

A cognitive bias that leads individuals or groups to underestimate risks, believing themselves immune to negative outcomes.

Self-Censorship

Self-censorship occurs when individuals withhold their opinions, expressions, or information out of fear of social or official reprisal, judgment, or rejection.

Direct Pressure

A form of social influence where explicit demands or requests are made to coerce someone into complying.

Sucker Effect

A phenomenon where individuals are less likely to contribute to a collective effort because they perceive that others are not doing their fair share, leading to a decrease in overall group contribution.