Network effects: Do they warm or chill a budding product?

摘要

Goldenberg, Libai, and Muller (2010) argue that network effects may slow the takeoff and growth in sales of a new product as adopters wait for sufficient others (threshold) to adopt. They call this the chilling effects of network externalities. They carry out a cellular automata experiment to examine how changes in certain parameter values affect profits due to this effect. They also adapt the Bass model to compute the chilling effect in five markets.