Network externalities are similar to positive externalities in that the person generating them does not directly benefit from them.

Question

Quizplus · Accepted Answer

Network externalities specifically refer to the benefits (or costs) that an individual's use of a good or service has on the value of that product to other people. Unlike positive externalities, where the benefit is not captured by the producer or user, in network externalities, the person generating them often directly benefits from increased network value as the product or service becomes more valuable to them as more people use it.

Network Externalities Are Similar to Positive Externalities in That the Person