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network externality

   Also found in: Wikipedia 0.01 sec.
network externality
A situation in which the price somebody is willing to pay to gain access to a network is based solely on the number of other people who are currently using it. Fax machines and Internet e-mail are prime examples. The more people who use the services, the more others are willing to use it. See network effect.


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Telephone is a mediating technology, has global reach, and has network externality.
For those users, there is a significant impediment to switching systems: the network externality involved.
Key Words Licensing Exclusivity, Transfer Costs, Monopoly Rent, Tacit Knowledge, Intellectual Property, Power Distance, Network Externality Introduction Aqueous Pharma Ltd.
 
 
 
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