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If you don't understand economies of scale or network effects, why are you commenting on this post? Ahem. Network effects refer to the network, not to the indi
by CWuestefeld 16y ago
If you don't understand economies of scale or network effects, why are you commenting on this post?
Ahem. Network effects refer to the network, not to the individual provider. As a customer of Verizon, for example, I can participate in the same network that ATT customers use. My ISP is PennTeleData, and I'm fairly confident that this is not the way you're moving your data. Yet we still manage to mutually benefit from network effects.
Economies of scale are a positive effect of larger entities. But this is weighed against by the dinosaur effect, shall we say, that prevents them from changing business methods or products in an agile fashion. Or perhaps you believe that Microsoft should be the only maker of software?