What does network effect mean?

Definitions for network effect
net·work ef·fect

This dictionary definitions page includes all the possible meanings, example usage and translations of the word network effect.

Wiktionary

  1. network effectnoun

    The higher growth rate of businesses with higher market share in those segments of economy in which the value of a product or a service depends on the number of existing users of the product or a service, as is the case with telephone networks.

Wikidata

  1. Network effect

    In economics and business, a network effect is the effect that one user of a good or service has on the value of that product to other people. When network effect is present, the value of a product or service is dependent on the number of others using it. The classic example is the telephone. The more people who own telephones, the more valuable the telephone is to each owner. This creates a positive externality because a user may purchase a telephone without intending to create value for other users, but does so in any case. Online social networks work in the same way, with sites like Twitter, Facebook, and Google+ becoming more useful as more users join. The expression "network effect" is applied most commonly to positive network externalities as in the case of the telephone. Negative network externalities can also occur, where more users make a product less valuable, but are more commonly referred to as "congestion". Over time, positive network effects can create a bandwagon effect as the network becomes more valuable and more people join, in a positive feedback loop.

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Numerology

  1. Chaldean Numerology

    The numerical value of network effect in Chaldean Numerology is: 1

  2. Pythagorean Numerology

    The numerical value of network effect in Pythagorean Numerology is: 7

Examples of network effect in a Sentence

  1. President Ashraf Ghani:

    Daesh's characteristic is that it is man-eating. It swallows its competitors, here, it is not physical presence of people from Syria or Iraq. It is the network effect.

  2. Maria Shagina:

    The network effect is not there because foreign participants are not keen on joining it, if you don't trust Russia in other respects why would you trust this system ?


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"network effect." Definitions.net. STANDS4 LLC, 2024. Web. 19 Apr. 2024. <https://www.definitions.net/definition/network+effect>.

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