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Tag Archives: Network effect

Network effects exploited by Face Book, or why we advertise in Face Book

We think a lot about network effects: the positive externalities caused by greater connectivity. A telephone network with 100 subscribers offers 99 calling opportunities whereas one with 10 subscribers offers only 9. That is why regulators had to fight so hard to ensure seamless interconnection that would give the subscribers on each network 109 calling […]

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