User:S4504955/sandbox

To achieve a certain amount and a stronger network effect requires a certain amount of critical mass to promote.Besides, the critical mass point is related to price.

Increasing critical mass can attract more users by increasing externalities. Another way is to sustainably add new interesting contents to increase more users before achieving critical mass.

Peer to Peer (P2P) network means that the resources or news could be seen and used by other peers, and peers' own resources would also be contributed to the network at the same form, which adopted by Twitter and Skype as the same form.

In some cases, the greater participation of agents will increase the value of the platform to other types of agents. This indirect network effect plays a similar role to the demand-side of economies of scale.

The main difference between network effects and economies of scale is that the marginal cost increases rapidly because the total value increases swiftly even if the cost increases.

Network effects are indeed driven by demand economies of scale, but the supply side of economies of scale are related to production efficiency and it could even cause monopolies in the industrial age.

Sony’s Betamax and JVC’s VHS can both be used for video cassette recorders (VCR), but the two technologies are not compatible. Therefore, the VCR that is suitable for one type of cassette cannot fit in another. VHS's technology gradually surpassed Betamax in the competition. In the end, Betamax lost its original market share and was replaced by VHS.

The word notorious is individualistic, which is not suitable for Wikipedia, and may lead reading misunderstandings. Therefore, the sentence should change to, Technology lock-in will theoretically occur among strong, symmetrical and network effect competitors. Once one of the competing companies takes the lead in a particular technology field, there is a greater chance to become the industry's technology standard.

Inherent Value cannot market on its own, generally their business models cannot be purchased for free. Therefore, the company will use the customer's money which paid for the products, to upgrade and promote their products, such as, iPad.

Instant messaging (IM) was used by the Israeli company Mirabilis for its ICQ products in 1996 freely for use. The IM technology has completed the use from the home to the workplace, also because of its faster processing speed and simplified process characteristics, which was expected that the number of IM users will increase on a large scale in the future.

For credit cards that are now widely used, large-scale applications on the market are closely related to network effects. Credit card, as one of the currency payment methods in the current economy, which was originated in 1949. Early research on the circulation of credit cards at the retail level found that credit card interest rates were not affected by macroeconomic interest rates and remained almost unchanged. Later, credit cards gradually entered the network level due to changes in policy priorities and became a popular trend in payment in the 1980s. Different levels of credit cards separate benefit from two types of network effects. The application of credit cards related to external network effects, which is because when this has become a payment method, and more people use credit cards. Each additional person uses the same credit card, the value of rest people who use the credit card will increase. Besides, the credit card system at the network level could be seen as a two-sided market. On the one hand, the number of cardholders attracts merchants to use credit cards as a payment method. On the other hand, an increasing number of merchants can also attract more new cardholders. In other words, the use of credit cards has increased significantly among merchants which leads to increased value. This can conversely increase the cardholder’s credit card value and the number of users. Moreover, credit card services also display a network effect between merchant discounts and credit accessibility. When credit accessibility increases which greater sales can be obtained, merchants are willing to be charged more discounts by credit card issuers.

Visa has become a leader in the electronic payment industry through the network effect of credit cards as its competitive advantage. Till 2016, Visa's credit card market share has risen from a quarter to as much as half in four years. Visa company is benefit from the network effect. Since every additional Visa cardholder is more attractive to merchants, and merchants can also attract more new cardholders through the brand. In other words, the popularity and convenience of Visa in the electronic payment market, lead more people and merchants choose to use Visa, which greatly increases the value of Visa.

The eBay website benefits from network effects， which explicit that the sellers improve the buyer's shopping experience to increase the attractiveness of the website. In turn, having more buyers will also enhance sellers’ sales. S4504955 (talk) 09:41, 30 October 2020 (UTC)