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How to Get Rich: Every Episode

Naval

Network Effects Create Natural Monopolies

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A network effect is when each additional user adds value to the existing user base. If you're number one in a network offect business, you win everything. Even drid sharing tends towards one winner take all system like uber will always have better economics than lift as long as it's moving more drivers and more riders around. Amazon prime and convenience stored credit cards and information creates a powerful network effect. The internet itself is a great leveller because people who want to communicate on the internet are forced to speak english.

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