Network effects
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Network effects are present when a product becomes more useful to consumers in proportion to the number of people using it. There are two types:
- Direct network effects
- The strength of direct network effects depends on the number of users. An example is a mobile phone: the more people can be reached mobile, the better
- Indirect network effects
- Similar effects apply to Complementary Assets. The value of these assets increases as the installed user base increases.
Part of Early mover effects
