DEMO — development content for layout testing. Not real editorial reporting.
DEMO content for development and layout testing — not real editorial reporting.
Network effects arise when each additional user makes a product more useful to others — as with marketplaces, payment systems and social networks.
How it works
Platforms often subsidise one side of the market to attract the other, and can grow rapidly once they reach a critical mass.
When a service becomes more valuable as more people use it, markets can concentrate quickly.
What to watch
Competition policy debates focus on interoperability, data portability and whether dominant platforms favour their own services.
Key concepts
- Platforms
- Competition
