Question: Which one is not correct about network effects? A. Direct network effects arise when the utility of a product or service to a new user

  1. Which one is not correct about network effects?

A.

Direct network effects arise when the utility of a product or service to a new user increases with the installed base of users of that product or service.

B.

Indirect network effects are often called cross-side effects.

C.

A locally clustered network creates higher barriers to entry than a global network does.

D.

Network effects generally increase the barriers to entry, but their impact is limited by multi-homing.

E.

Product reviews on Amazon is an example of direct network effects.

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