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Meaning of network effect in English:

network effect

noun

Economics

  • A phenomenon whereby a product or service gains additional value as more people use it.

    ‘instant messaging is a market with strong network effects’
    • ‘the network effect becomes a larger attractant than marketing as the business grows’
    • ‘Now, 5 million users later, the tiny device has become a huge asset - a classic case of a network effect.’
    • ‘A second challenge to health IT is that there is a negative network effect for early adopters.’
    • ‘That cohesion - a kind of network effect - is what makes the peer group, or team, much stronger than the simple sum of its parts.’
    • ‘A network effect occurs when my benefit from joining a network depends on how many others have joined the network.’
    • ‘Rather than wait for the network effect, be a catalyst and supporter of it.’
    • ‘They have a network effect, in that they become more useful as more people use them.’
    • ‘Imagine the network effects that will occur when your industry gets networked and rebuilt and reinvented.’
    • ‘With network effects, consumers and businesses may reap significant advantages that flow from the many consumers that utilize the same provider or platform.’