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What is Indirect Network Effects

Chapter 170
Encyclopedia of E-Commerce Development, Implementation, and Management
Effects that an increase in usage of one product or network leads to an increase in the value of a complementary product or network on the other side of the network, which can in turn increase the value of the original.
Published in Chapter:
What Makes the Platform Network Effects Unsustainable?: Winner-Take-All Strategies and Unpaid Complementors
Wiboon Kittilaksanawong (Saitama University, Japan)
Copyright: © 2016 |Pages: 11
DOI: 10.4018/978-1-4666-9787-4.ch170
Full Text Chapter Download: US $37.50 Add to Cart
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Chapter 132
Network Effects
The increase in the economic utility of a product or technology as more customers start using complementary products or as more suppliers start offering complementary products, is referred to as an indirect network effect. It is also referred to by others as a market-mediated network effect or the hardware-software paradigm.
Published in Chapter: Network Effects; From: Encyclopedia of Networked and Virtual Organizations
Full Text Chapter Download: US $37.50 Add to Cart
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