Question

The value derived from network effects comes from three sources:

A) Users, developers, and complementary goods
B) Complementary goods, backward compatibility, and developers
C) Subsidies, complementary goods, and move early strategy
D) Users, subsidies, and backward compatibility.

Answer 1

The value derived from network effects comes from three sources: users, developers, and complementary goods.

Step-by-step explanation:

The value derived from network effects comes from three sources:

1. Users: When more users join a network, it becomes more valuable for everyone involved. This is because more users create a larger user base and provide more opportunities for interaction and collaboration.
2. Developers: Developers play a crucial role in enhancing the network by building applications and platforms that attract more users and provide them with new functionalities and experiences.
3. Complementary goods: Complementary goods are products or services that add value to the network. For example, a smartphone would be a complementary good for a mobile app network.

Therefore, the correct answer is option A) Users, developers, and complementary goods.