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There is a lot of interesting literature out there on network effects. This summary of the book seems to focus primarily on one-sided markets (the value of the
by globalise83 5y ago
There is a lot of interesting literature out there on network effects. This summary of the book seems to focus primarily on one-sided markets (the value of the platform increases as more users join). There is just as much or more fascination to be had in multi-sided market dynamics where networks of different participants and users experience evolving value propositions as the different user segments grow and change. One step further is to combine the economics of networks with analysis of the modularity of the platform functionality, and look how interface design, openness and closedness, etc., affect the evolution of the platform ecosystem. A truly fascinating topic that is more akin to biology than classical economics.
- bschne 5y agoCan you give some pointers to said literature? It's a topic I keep coming back to but haven't really read about much...