Managing a Business Strategically: Direct (or same-side) network externalities: increasing the number of users on one side of the network makes it either more or less valuable to users on the same side

Question

Direct (or same-side) network externalities: increasing the number of users on one side of the network makes it either more or less valuable to users on the same side

Pim Bodzinga · Accepted Answer

-	Mostly positive for end users: compatibility, standards sharing
-	Mostly negative for complementors: competitive crowding

Managing a Business Strategically

Direct (or same-side) network externalities: increasing the number of users on one side of the network makes it either more or less valuable to users on the same side

- Mostly positive for end users: compatibility, standards sharing - Mostly negative for complementors: competitive crowding

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