2min chapter

Pattern Breakers cover image

Anu Hariharan: How to think about network effects for your startup, from the beginning

Pattern Breakers

CHAPTER

The Different Types of Network Effects

The definition of network effects is as more users join, the service is more valuable to everyone. People often forget that it has to be useful to also the existing users. Economies of scale didn't really exist as a notion until the Transcontinental Railroad and the Steam Engine and mass production. It seems like network effects are really, for the first time, demand side economies of scale.

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