In industries characterized by network externalities,the value of a technological innovation to users will be a function only of its stand-alone benefits and cost.

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In industries characterized by network externalities, the value of a technological innovation to users will also depend on how many other users adopt it. This means that the benefits of the innovation increase as more people use it, leading to a positive feedback loop. Therefore, the value to users is not a function solely of its stand-alone benefits and costs.

In Industries Characterized by Network Externalities,the Value of a Technological