Snob effect - network externalities, Microeconomics

The Snob Effect

- If network is negative externality, a snob effect exists.

* The snob effect refers to desire to own unique or exclusive goods.

* The quantity demanded of snob good is higher the fewer the people who are having it.



1458_snob effect.png

11_snob effect1.png

Network Externalities and Demands for Computers and Fax Machines


* Examples of Positive Feedback Externalities

- Mainframe computers: 1954 - 1965

- Microsoft Windows PC OS

- Fax-machines and electronic mail 

Posted Date: 10/10/2012 8:12:16 AM | Location : United States

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

Write discussion on Snob effect - network externalities
Your posts are moderated
Related Questions
Marginal Utility and Indifference Curve - If the consumption of a product moves along an indifference curve, additional utility derived from the increase in consumption of sing

Explain the role of managerial ecnomist in kissan &dipsy fro ub group

explain diagrammatically the bains model of limit pricing.

Long-Run Versus Short-Run Cost Curves What happens to average costs when both the inputs are variable versus only having one input that is variable (short run)? The Inflexi

discuss whether marginal utility is a realistic piece of economic analysis in explaining consumer demand

Balancing Needs and Resources planning is a balancing act. It involves the balancing of needs with resources towards set goals. Likewise, educational planning involves the bal

Case Study - EUROPE   Let us now see how events unfolded over the decades in Europe that led to monetary unification in terms of a single currency and single central bank. At

Allocated Stock and Safety Stock  Allocated stock  A category of stock which ensures that current stock is set aside and not issued under the normal procedure.  Safet

I have to make a research paper project on Investigating the buying behavior of individuals in the white goods sector and seeing if there exists any negative relationship between d