What Advice Would You Give to a Firm That Wants

question 39

Multiple Choice

What advice would you give to a firm that wants to exploit network effects?

• A) Price your products high in the early stages of the market's development.
• B) Be a first mover and thus establish the technical standard.
• C) Create incentives for other firms to develop complementary products.
• D) Develop more killer applications than do competitors.
• E) Ask customers to bear the switching costs.

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