discussion question, you will investigate how network effects affect (or not) market structure.

Network effects, or externalities, occur when greater use of a product increases the benefit of that product to everyone. For example, the more users post on Twitter adding links and media, the more useful the platform becomes to the public. As more drivers became part of Uber and Lyft, more people are likely to use these ride-sharing apps.

In his blog, Nicholas Johnson describes network effects are and how they contribute to company growth and profitability

However, in this Harvard Business Review article, Catherine Tucker of MIT Sloan School of Management argues that network effects are not the panacea we first thought:

• Investigate a company (such as PayPal, Microsoft, Slack, Facebook, Uber, Twitter, AirBnB, HULU, Amazon) or an industry (such as digital platforms or ride-sharing) where network effects appear to be important to company success. Explain how network effects contribute to company sales growth, profitability, and size.
• How (if at all) have network effects allowed one or more companies to dominate the marketplace? Or have network effects proven to provide only a short-term competitive advantage? Explain.