network-effects

Vocabulary Word

Definition

'Network effects' refers to how a product or service gains more worth as more people use it. Think of social media platforms, the more friends you have, the better your experience.

Examples in Different Contexts

In economics, 'network effects' describe how a product or service gains additional value as more people use it. An economist might say, 'Social media platforms demonstrate strong network effects because each new user makes the network more valuable to all users.'

Practice Scenarios

Creative

Scenario:

Our art community has been growing over the past months. The diverse range of artists is enriching our community.

Response:

Definitely, the more the people, the richer the discussions. We are benefiting from network effects significantly.

Tech

Scenario:

Our platform's success is largely determined by the number of active users. There's so much value in having large, connected communities.

Response:

Yes, it's the network effects. We should focus on keeping our current users engaged while attracting new ones.