A phone network, or a social app, becomes more valuable to you as more people join it

Some products gain value not from their own features but from how many other people already use them: a telephone is useless if nobody else has one. Economists call this a network effect, and it explains why early fax machines and social networks struggled to gain users until they reached a tipping point, after which growth became self-reinforcing.

— Jeffrey Rohlfs, Network externalities (effects), hype and cycles of forecasting — Bell Journal of Economics, 1974

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