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I was referring to the exaggeration as the 'kool-aid'. I think network effects are self-evident, it's just that the term 'network effect' has transcended into b
by Xichekolas 19y ago
I was referring to the exaggeration as the 'kool-aid'. I think network effects are self-evident, it's just that the term 'network effect' has transcended into buzzword territory. No economic principle operates perfectly in the real world, because not all people actually act rationally in the real world.
- davidw 19y agoThere are certainly people who hype network effects and see them as being stronger than they are in some fields. However, imperfect or not, their effects are quite real. Call them 'positive network externalities' or 'demand-side economies of scale' if you want a different term.