network externality

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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.

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Analysis of decisions on sequential product introduction for high technology products under conditions of network externality is shown in [10].

Critical decisions in new product introduction and development--a ... by Singh, Kashi N. / Journal of Academy of Business and Economics

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