Chapter 9: Network Effects
Across
- 3. an increased number of users lead to an increase in value for other users in the same user group
- 4. people who listen to advice from others (i.e., word-of-mouth) and are therefore likely to buy the version of the product owned by most other people. These people cause network effects.
- 5. users of a network who have a high number of links
- 8. value of that service as perceived individually by each user
- 9. the aggregated behavior of the users induces value on other users
- 10. the effect that the number of users or amount of usage of a service has on
- 11. an increase in the number of users in one user group enhances value in other user groups
- 12. market feedback causes a perceived increase in value (e.g., more users) that stimulates further increase in value (users).
Down
- 1. users of a network who have a low number of links
- 2. market feedback causes a perceived decrease in value (e.g., fewer users) that stimulates further decrease in value (users).
- 4. people who do not listen to advice and buy the product of their own liking. These people do not cause network effects.
- 6. users induce value on other users by the means of direct interaction between the users
- 7. the concept that any human being is (at the most) six intermediaries away from any other human on Earth