Word info

network effect

Noun

Meaning

network effect (plural network effects)

(economics) 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.

Source: en.wiktionary.org

Examples

Facebook is quite entrenched and has a network effect. It's hard to break into a network once it's formed. Elon Musk

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