a. Give three examples of products with direct network effects. What strategies might a firm use to achieve a critical mass of users? Provide at least two real-world examples of successful strategies.
b. Give three examples of products with indirect network effects. What strategies might a firm use to achieve a critical mass of users, and how would they implement them? What might be different from the case where a product has direct network effects? Provide at least two real-world examples of successful strategies.
c. Some observers of the smartphone industry, when comparing iPhone, Android, and Windows Phone, have stated that quality of the product doesn't actually matter that much in this industry, since the network effects are so large. Do you agree with that statement? Why or why not, or to what extent? Explain, and elaborate on how network effects apply to smartphone operating systems. Is it a direct or indirect network effect?
d. How might a market with powerful network effects benefit from product standards? Describe three ways in which a standard might arise in the market, and discuss two strategies that a firm could use to try and get its product adopted as a standard.