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Network Effects

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Compare and contrast direct and indirect network effects.

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Compare and contrast direct and indirect network effects.

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The main difference between direct and indirect network effect is that in the case of direct network effect, the value of product or service depends on the number of other users available to participate as well as on the number of complementary products with which data can be shared. For example, the value of word processor such as MS office depends on the number of compatible processors with which ...

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Sheetal Jain, PGDM
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  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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