Network effects
[#julian-defaults] gives a nicely packaged definition of network effects. Benefiting from network effects means that the system gets more valuable as it amasses something.
- Direct network effects: value comes from users
- Indirect network effects: value comes from groups of users attracting other groups of users. I.e.: developers bring more users (bc apps), and more users bring more developers (bc more money)
- Data network effects: value comes from the data generated by users
[#julian-defaults]: Lehr, Julian. “Julian.Digital - The Power of Defaults.” Julian.Digital (blog), December 20, 2021. https://julian.digital/2021/12/20/the-power-of-defaults/.