Positive network effects occur when
multiple choice 1
an increase in the size of a network increases the value of the network to current and potential users.
a decrease in the size of a network increases the value of the network to current and potential users.
an increase in the size of a network decreases the value of the network to current and potential users.
there is a benefit beyond the use of the network by current and potential users.
Positive network effects generate a tendency toward market power and monopoly because the largest network will, other things equal,
multiple choice 2
attract more users than smaller rival networks.
be likely to fix the price for smaller rival networks.
have the most patents.
have the greatest regulatory power.
The market power of large networks is constrained by
multiple choice 3
product differentiation and multi-homing.
continuous contributions of new developers.
government price setting.
tipping points and multi-homing