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Dec 20, 2018

The Dynamics of Network Effects

When you try to understand an industry that may have been built on a network effect, you quickly realize that unless it is a simple effect (credit cards, marketplaces), it can be challenging to understand the dynamics and mechanisms that influence its power structures and internal economies. To comprehend this is a precondition when creating a strategy for any participant involved. The article here is a great summary of current developments in many markets.

https://a16z.com/2018/12/13/network-effects-dynamics-in-practice/

Another good, more basic source:
https://www.nfx.com/post/network-effects-manual