173k views
4 votes
: how do network effects help facebook fend off smaller social-networking rivals?

User Navarasu
by
6.7k points

1 Answer

2 votes
How do network effects help Facebook fend off smaller social-networking rivals? The way a network effect works it that one user of a good or service determine the value of the product to other people. Depending on how many people use the product or service, allows the network to see the value they believe it holds. Because Facebook has billions of users, they have a high value and strong network.
User Kopelitsa
by
6.4k points