In the context of digital platforms, 'Network Effects' imply that:
A. The value of the platform falls with more users
B. Network size is irrelevant
C. The value of the platform to each user rises with the number of other users
D. Only offline networks matter
Answer: Option C
Solution (By JKSSB Mock Tests)
Network effects (or network externalities) exist when the utility a user derives from a platform increases with the number of other users on the same side or the opposite side of the market.
No comments yet. Be the first to start the discussion!