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Many High-Technology Industries Are Characterized by Network Externalities

question 47

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Many high-technology industries are characterized by network externalities. What are those externalities and how can they pay off?


Definitions:

Situational Cues

Environmental or contextual signals that influence an individual's behavior, perception, or decision-making in specific situations.

Heuristic Shortcuts

Simple, efficient rules which people often use to form judgments and make decisions, sometimes leading to cognitive biases.

Stereotyping Heuristic

A mental shortcut that allows individuals to make quick judgments about people or situations based on generalizations or stereotypes.

Representation Heuristic

A cognitive shortcut in which judgments are made based on how much one thing resembles another.

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