This document discusses foundational concepts for networks including network effects versus traditional linear value chains, multi-homing and switching costs, and two-sided networks. Network effects create value as more users join a platform, unlike traditional linear value chains, and multi-homing and switching costs impact how users interact with networks. Two-sided networks facilitate interactions between two distinct user groups.
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Network Effect
This document discusses foundational concepts for networks including network effects versus traditional linear value chains, multi-homing and switching costs, and two-sided networks. Network effects create value as more users join a platform, unlike traditional linear value chains, and multi-homing and switching costs impact how users interact with networks. Two-sided networks facilitate interactions between two distinct user groups.