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    Direct and Indirect Network Effects

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    Compare and contrast direct and indirect network effects. Please try to be concise but thorough.

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    If consumption gains depend absolutely on the entire number of consumers who buy simpatico products there remains a network effect. When there is a through physical effect of the number of buyers on the lineament of the product, it is called direct effect. Networks that work with direct physical effects are communication networks and communication technologies, like telephone and email networks. When consumption gains do not lie upon instantly on the magnitude of the network is ...

    Solution Summary

    The solution compares and contrasts direct and indirect network effects.