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> AppAmaGooBookSoft are AppAmaGooBookSoft primarily because they have mortal locks on distribution. Well, first of all, this isn't true. Google and FB aren't s
by brucephillips 9y ago
> AppAmaGooBookSoft are AppAmaGooBookSoft primarily because they have mortal locks on distribution.
Well, first of all, this isn't true. Google and FB aren't so profitable because of a distribution monopoly. They're profitable due to network effects.
- chubot 9y agoYes I agree the original post oversimplified it.
- mrep 9y agonetwork effects: a phenomenon whereby a product or service gains additional value as more people use it. How does google search get better from more people using it?
- chubot 9y agoTo be brief, more data (generated by clicks and queries) leads to better ranking. Better ranking attracts more users. Starting a search engine from scratch without any user data is a big disadvantage. Basically, you're benefitting from other people who are searching for the same thing as you on the same search engine. (I'm sure that's not the only network effect, but it's one of them.)