Network Externalities By *Asterisk*
by Katt Kitchen
1. Direct Externalities
1.1. Increase value
1.2. Same Side Network Effect
1.2.1. Facebook
1.2.1.1. More friends
1.2.1.2. Saturated
2. Indirect Externalities
2.1. Complementary products or networks
2.2. Software applications
2.2.1. Operating systems
2.2.2. Windows vs.Linux
2.2.3. Cross-Side Network Effect
2.2.3.1. More readers
2.2.3.2. More adverts
3. Examples
3.1. Social Media
3.1.1. Facbook
3.1.2. Instagram
3.1.3. Twitter
3.2. Products and Services
3.2.1. Skype
3.2.1.1. Self-promoting
3.2.2. Craigslist
3.2.3. Ebay
3.2.3.1. PayPal
3.3. Google and Amazon
3.3.1. Economies of Scale
3.3.1.1. Scale Externalities
4. What is it?
4.1. Increase in consumers
4.2. Critical mass
4.3. Values
4.4. Standardization
4.4.1. Encourages
4.4.2. Limits
4.5. Monopoly
4.6. What makes an externality?
4.6.1. Economies of scale
4.6.2. Where is the benefit?
4.7. A need to share
5. Utilization
5.1. Bandwagon Effect
5.2. Metcalfe's Law
5.3. Positives
5.3.1. Connecting the world
5.3.2. Lower Cost
5.3.3. Innovation
5.3.4. Advertising
5.4. Negatives
5.4.1. Congestion
5.4.2. Decreased Value