Advanced Competitive Strategy | Online Course Support

What is typical for the adoption and critical mass stage in a network market?

 
 
 

This is true. This describes the network effect which increases the utility of a single user with the number of users, thereby increasing the number of consumers willing to adopt.

 

This is correct. Once the installed base of a network good is sufficiently high the adoption rate will increase such that we reach critical mass and adoption becomes self-sustaining.

 
 

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