1. Using the SEEI format for critical thinking, describe how Amazon takes advantage of Metcalfe's Law (network effects)? Provide two specific examples in your SEEI.
State:
Explain:
Example:
Illustrate:
2. The natural state (or ending state, i.e. not near the beginning) of a market where network effects are present is for there to be intense competition between several rivals.
a. false
b. true
3. What occurs when the value of a product or service is lowered as more customers use it?
a. Congestion effects
b. Network internalities
c. Backward incompatibility
d. Market inflexibility
e. Convergence