Tag: network effects
This essay originally appeared on TechCrunch. I had the pleasure of co-authoring it with Nir Eyal. Nir runs a great blog about the intersection of psychology, technology, and business at NirAndFar.com. If there is one altar at which Silicon Valley worships, it is the shrine of the holy network effect. Its mystical powers pluck lone startups from obscurity [...]
As a network scales, network effects make the network more useful for users until a point after which further scale makes the network less useful to the users. This is reverse network effects with scale.