Network externalities, Microeconomics

NETWORK EXTERNALITIES

Till this point we have assumed that people's demands for good are independent of each other.

Actually, a person's demand can be affected by the number of other people who have purchased that good.

If this is the case, a network exists externality.

Network externalities can be negative or positive.

A positive network exists externality if the quantity of a good demanded by a consumer increases in response to an increase in the purchases by other consumers.

Negative network externalities are the opposite of it. 

Posted Date: 10/10/2012 7:58:52 AM | Location : United States







Related Discussions:- Network externalities, Assignment Help, Ask Question on Network externalities, Get Answer, Expert's Help, Network externalities Discussions

Write discussion on Network externalities
Your posts are moderated
Related Questions
Explain how Monetarist economics views the role of markets and government intervention in fighting business cycles. Monetarist economics believes that the government should fol

draw the demand curve,when there is rise in the price of a product on the demand of the product


Show that a pulsed spherical wave has a complex wavefunction of the form U(r,t) = (1/r)a(t-r/c) where a(t) is an arbitrary function. An ultrashort optical pulse has a complex wavef

compare and contrast adam smith''s theory of absolute advantage theory and david ricardo''s comparative advantage theory of international trade.

Elastic and Inelastic Demand can be understood as follows: Slope and elasticity of demand have an inverse relationship between them. When slope is high elasticity of demand bec

1. On Wednesday the 16 th , 2008 an enormous avalanche knocked out the lines that transmitted electricity from a hydroelectric dam to Juneau, Alaska. This eliminated Juneau's prima


When you drop by the only coffee shop in your neighbourhood, you notice that the price of a cup of coffee has enhanced  considerably since last week.  You decide it's not a big dea

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4