network effect

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network effect

The resulting increased value of a product because more and more people use it. Telephones, fax machines, computer operating systems and smartphones have been prime examples. A product's success is more about compatibility and less about its superiority to the competition. For example, Microsoft became hugely successful due to the network effect, because more and more people bought Windows PCs, and developers began to write programs for Windows only or at least much earlier than for the Mac version. In contrast, owing to the network effect, the company has also suffered, because although Nokia Windows Phones are excellent devices, they have a tiny market share compared to iPhone and Android, and fewer developers create apps for Windows Phones as a result. See tipping point and network externality.
References in periodicals archive ?
Michael Vitevitch, KU professor of psychology said that if words are stored in our memory like a network then it allows them to see how characteristics of the network affect language related processes.
The study used econometric methods to measure whether and to what extent pre-purchase services provided by the NeighborWorks network affect first mortgage loan performance.
with BMC Service Impact Manager gives enterprises expanded visibility into their IT infrastructure, enabling them to understand how changes to the configuration of the network affect business services.
This integration supports the BMC Software BSM strategy by providing companies with expanded visibility into their IT infrastructure and enables them to understand how changes to the configuration of the network affect business services.
How will Telemundo's merger with the leading English language network affect the comparatively low ad rates for Hispanic media?
I will analyze how the position in a risk-sharing network affects the incentives to adopt formal insurance, how network structure affects overall adoption, how formal insurance could benefit from network monitoring on efforts and whether the adoption of formal insurance strengthen or weaken the risk-sharing network.
Researchers will evaluate how using radio weather mapping and in-situ weather sensors in the network affects lighting performance and energy savings.
Determining the cause of a reception problem requires a solution that distinguishes between RF and IP signals, recognises how the delivery network affects video quality, and quickly isolates issues so that the problem can be appropriately addressed.
Because your entire social network affects your health, habits, and wellbeing, mutual friendships matter even more.
In each place, the Network affects the environment in one or more of five predictable, major ways:
Others will find benefit in the manner in which the book ties diverse themes together into a comprehensive explanation of how interdependencies of individual railroads comprise a functional network, and of how that network affects, and is affected by, other modes of transportation and by the entire economy as well.
The nature of the breakdown and reformation of this network affects a compound's processability in the uncured state and its mechanical properties in the cured state (refs.

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