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Explain what kind of network effects they display

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Discussion

Think about the following products: automatic teller machines, VCRs, diesel-powered cars, coal-fired power plans, VOIP phones, and surgical instruments. Are they subject to network externalities? If not, then explain why not.

If they do, then explain what kind of network effects they display. Also explain why there are network externalities. What causes them? Do they continue to increase with the number of customers, or do they "saturate" once you reach a critical mass of customers? Explain why the pattern occurs.

Reference no: EM131642228

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