The Process of Network Effect

George A. Villasis

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: This paper presents a simple model of Network Dynamics to underpin the stages of theoretically understanding Network Effect for better inter-disciplinary and -functional collaboration. It mainly illustrates Social Network Growth as exponentially driven by potential connectivity mutually multiplying with the number of users it attracts. On said principle, the paper further explains how far-reaching networks can create new communities on the Internet. Capping the discussions is an analytical example of Critical Mass (sustainable number) reflective of Network Effect on which it builds up. But there is more to quantitative models as network facilities and user readiness pave the way for network benefits to eventually snowball and sustain network growth.

Keywords: network; externality; critical mass; exponential; group-forming (search for similar items in EconPapers)
Pages: 13 pages JEL Classification:
Date: 2008-11
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c013_012

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