Network Externality
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
The utility a user derives from a product depends on the number of other users. The more users, the greater the utility for each user. Scaffold role: The engine of positive feedback. Network externalities are the fundamental reason why platforms can achieve monopoly and the theoretical basis for heavy subsidies to acquire users in the early stages.
SCAFFOLDING EFFECT
Reduce cognitive load
The engine of positive feedback. Network externalities are the fundamental reason why platforms can achieve monopoly and the theoretical basis for heavy subsidies to acquire users in the early stages.
Anchor fast decisions
The increase in users brings positive or negative external benefits to other users, emphasizing the mutual external influence among users.
MINIMUM ACTION
In progress 0/1Practice this model in one real situation:
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Source support: Explicit
- zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E7%BD%91%E7%BB%9C%E5%A4%96%E9%83%A8%E6%80%A7verified
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