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Unformatted text preview: p, o r buys the same trash
bags as yo u. But when netwo rk ef f ects are present they’re amo ng the mo st impo rtant reaso ns yo u’ll
pick o ne pro duct o r service o ver ano ther. Yo u may care very much, f o r example, if o thers are part
o f yo ur so cial netwo rk, if yo ur video game co nso le is po pular, and if the Wikipedia article yo u’re
ref erencing has had prio r readers. And all tho se f o lks who bo ught HD DVD players sure were
bummed when the rest o f the wo rld declared Blu-ray the winner. In each o f these examples,
netwo rk ef f ects are at wo rk. Not That Kind of Network
The term “netwo rk” so metimes stumps peo ple when f irst learning abo ut netwo rk ef f ects. In
this co ntext, a netwo rk do esn’t ref er to the physical wires o r wireless systems that co nnect
pieces o f electro nics. It just ref ers to a co mmo n user base that is able to co mmunicate and
share with o ne ano ther. So Facebo o k users make up a netwo rk. So do o wners o f Blu-ray
players, traders that buy and sell sto ck o ver the NASDAQ, o r the su...
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This document was uploaded on 01/31/2014.
- Winter '14