Use and Abuse of Network Effects
15 Pages Posted: 7 Aug 2018 Last revised: 16 Dec 2020
Date Written: September 17, 2017
Abstract
The term "network effects" has a clear meaning in economics but non-economists often confuse it with other concepts such as increasing returns to scale and learning-by-doing. This essay is an attempt to clear up some of this confusion.
Keywords: network effects
JEL Classification: L00, L40, D85
Suggested Citation: Suggested Citation
Varian, Hal R., Use and Abuse of Network Effects (September 17, 2017). Available at SSRN: https://ssrn.com/abstract=3215488 or http://dx.doi.org/10.2139/ssrn.3215488
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