Sure, Network Effects Are Valuable, but Why? List the Three

question 33

Essay

Sure, network effects are valuable, but why? List the three sources of the value (cited in our textbook & in class) that fuel the competitive advantage of network effects.

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Definitions:

Group Cohesiveness

The sense of solidarity, loyalty, and unity among members of a group, which fosters increased productivity and member satisfaction.

Deindividuation

A psychological state where an individual loses self-awareness and sense of individuality, often resulting in uninhibited and sometimes antisocial behavior.

Social Loafing

A reduction in individual effort when working in a group compared to working individually.

Homogeneity

The quality or state of being uniform or similar in nature or character.