Meaning of network effect | Babel Free

Definitions

The higher growth rate of businesses with higher market share in those segments of economy in which the value of a product or service depends on the compounding effects of the number of existing users of the product or a service, as is the case with telephone networks.

Equivalents

Examples

“Aided by preferential attachment and network effects (the phenomenon of a good or service becoming more valuable the more people who use it), a handful of winners emerge, overshadowing other available options.”

CEFR level