Network externalities, Microeconomics

Assignment Help:

NETWORK EXTERNALITIES

Till this point we have assumed that people's demands for good are independent of each other.

Actually, a person's demand can be affected by the number of other people who have purchased that good.

If this is the case, a network exists externality.

Network externalities can be negative or positive.

A positive network exists externality if the quantity of a good demanded by a consumer increases in response to an increase in the purchases by other consumers.

Negative network externalities are the opposite of it. 


Related Discussions:- Network externalities

Amalgamation, explain the following disadvantages of amalgamation. Complex ...

explain the following disadvantages of amalgamation. Complex nature

Incidence tax, If the inverse demand curve is p=120-Q and the marginal cost...

If the inverse demand curve is p=120-Q and the marginal cost is constant at 10, how does charging the monopoly a specific tax of r=10 per unit affect the monopoly optimum and the w

What do you meant by hoarding, Q. What do you meant by Hoarding? A situ...

Q. What do you meant by Hoarding? A situation in that companies, financial investorsor individual consumers choose to hold hoards of cash or other liquid assets, instead of spe

What is Oxidation Number, Definition of oxidation number... Oxidation numb...

Definition of oxidation number... Oxidation number is a charge of central atom appears to keep if all of the ligands are removed along with the electron pairs which are shared wit

Demand elasticity analysis, demand elasticity analysis and its significance...

demand elasticity analysis and its significance in pakistan

Demand and supply, Define the term “cross elasticity of demand” (2 marks) P...

Define the term “cross elasticity of demand” (2 marks) Price of commodity X (SH) Demand for commodity X (Units) 12 80 16 100 20 120 24 140 28 160 d) The following data relate to a

Demands for the two market are P1=15-, demand for two market are P1=15-Q1&P...

demand for two market are P1=15-Q1&P2=25-Q2.the monopoly TC is C=5+3(Q1+Q2).What are ,output,profit&MR if the monopolist can price disc? riminate

PPC schedule, 1)The productive capability of an economy is such that to pro...

1)The productive capability of an economy is such that to produce 5 units of military good it takes 2 workers to be employed while 10 units of consumer goods require 3 workers. Res

Determine the optimal number of ads -regression, You work in the front offi...

You work in the front office of the Spokane Indians, a minor league baseball team that plays in the Northwest League of Minor League Baseball. Your boss wants to know the different

Monopoly, causes for emergency of monopoly

causes for emergency of monopoly

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd