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

Synonyms

bandwagon effect

Examples

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

Close letter words and terms

network dead zone network disconnection area network divergence network externality network interface card network interface controller