Re:Network Effects Manual
by cma on Tuesday January 09, 2018 @05:21PM
(#16110692)
> Our three-year study, which we released recently, shows that nfx are responsible for 70% of the value created by tech companies
This (aside from censorship) is why China doesn't let US tech companies in. There is just straight network value to be captured in certain services that will be there no matter who provides it. Why pay a tax to another country for every domestic taxi ride taken, etc.?
Re:Network Effects Manual
by realandreskytt on Wednesday January 10, 2018 @12:32AM
(#16112768)
Yay, System Dynamics! Contrary to the claim, this sort of thing has been actively researched since the 50s. Not sure what the “playbook” approach brings or why it could be claimed to be universal.
Re:Network Effects Manual
by aidenn0 on Tuesday January 09, 2018 @07:15PM
(#16111449)
Internet, Electricity, and telephone providers do not benefit from network effects, since anybody can connect to the PSTN or internet, and electricity is the same regardless of where it comes from.
[edit] The phone system in 1908 had network effects, but does not today. One might say that internetworking protocols remove the barrier of network effects.
This (aside from censorship) is why China doesn't let US tech companies in. There is just straight network value to be captured in certain services that will be there no matter who provides it. Why pay a tax to another country for every domestic taxi ride taken, etc.?
[edit] The phone system in 1908 had network effects, but does not today. One might say that internetworking protocols remove the barrier of network effects.