IssueRaiser

I think you're misunderstanding what "network effects" means.

I think you're misunderstanding what "network effects" means. A product or service benefits from the network effect when it becomes more useful the more users it has. For example, a telephone by itself is completely worthless. A telephone when all your friends also have telephones is great. Uber doesn't benefit from this effect in any meaningful way. If my friends all use Uber, that doesn't make Uber inherently more useful to me than Lyft (or a cab). Its utility is divorced from the number of other people using it. What you're talking about is more properly called "mindshare" (much as I hate that term) or simply "consumer awareness".

Posted by ForHackernews on Oct 28, 2014, 8:50 PM

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I think you're misunderstanding what "network effects" means.

ForHackernewsOct 28, 2014, 8:50 PM

I think you're misunderstanding what "network effects" means. A product or service benefits from the network effect when it becomes more useful the more users it has. For example, a telephone by itself is completely worthless. A telephone when all your friends also have telephones is great. Uber doesn't benefit from this effect in any meaningful way. If my friends all use Uber, that doesn't make Uber inherently more useful to me than Lyft (or a cab). Its utility is divorced from the number of other people using it. What you're talking about is more properly called "mindshare" (much as I hate that term) or simply "consumer awareness".

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