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

Marginal Revenue, (i) When the demand function is 2Q - 24 + 3P = 0, find th...

(i) When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3. (ii) Given the demand function 0.1Q - 10 +0.2P + 0.02P2 =0, calculate the price elasticity of

Explain abput capitalist class, Q. Explain abput Capitalist Class? Capi...

Q. Explain abput Capitalist Class? Capitalist Class:Group of individuals (which represents just a couple of percent of population in advanced capitalist countries) which contro

What is the equilibrium quantity?, Supply and demand for a given type of MP...

Supply and demand for a given type of MP3 player are given by the following equations: P=980-1.5Qd P=20+0.9Qs

Combined ppc, How do I draw and interpret a combined ppc curve?

How do I draw and interpret a combined ppc curve?

Why it is difficult to achieve macro objectives, Why is it so difficult for...

Why is it so difficult for government to achieve all macro objectives simultaneously? Specifically showing possible trade-offs i.e. a) Stimulatory policies which enhance AD

What is debt burden, Q. What is Debt Burden? Debt Burden:Real economic ...

Q. What is Debt Burden? Debt Burden:Real economic importance of a debt relies on interest rate that should be paid on debt and on total income of consumer or business which und

Cost minimizing input choice, The Cost Minimizing Input Choice - Assump...

The Cost Minimizing Input Choice - Assumptions Two Inputs: Labor (L) & capital (K) Price of labor: wage rate (w) The capital price - R = depreciation ra

Benefits of education, Benefits of Education The returns a person/soci...

Benefits of Education The returns a person/society (state/government) gets from acquiring education is referred to as benefits from education. If such returns are paid/receive

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