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    Assessing the Strength of Network Effects in Social Network Platforms
    19 Mar 2021Working Paper Summaries

    Assessing the Strength of Network Effects in Social Network Platforms

    by Marco Iansiti
    Network-specific traits, such as the degree of clustering and the prevalence of multihoming, influence the strength and competitive impact of network effects. However, network size alone is often misleading, and network effects should be examined on a case-by-case basis.
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    Author Abstract

    Network effects have risen to the forefront of platform competition discussions (e.g., the House Judiciary investigation of competition in digital markets, claiming that Facebook, for example, is entrenched due to strong network effects and high switching costs). While newer literature has developed much more sophistication in characterizing network effects, common regulatory perspective often assumes more simplistic views.

    Paper Information

    • Full Working Paper Text
    • Working Paper Publication Date: February 2021
    • HBS Working Paper Number: 21-086
    • Faculty Unit(s): Technology and Operations Management
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    Marco Iansiti
    Marco Iansiti
    David Sarnoff Professor of Business Administration
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