Use and Abuse of Network Effects

15 Pages Posted: 7 Aug 2018 Last revised: 16 Dec 2020

See all articles by Hal R. Varian

Hal R. Varian

School of Information; University of California, Berkeley - Operations and Information Technology Management Group; National Bureau of Economic Research (NBER)

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

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

Hal R. Varian (Contact Author)

School of Information ( email )

UC Berkeley
Berkeley, CA 94720-4600
United States
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510-642-5814 (Fax)

HOME PAGE: http://www.sims.berkeley.edu/~hal/people/hal/biography.html

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National Bureau of Economic Research (NBER)

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