For a good with network externalities, the number of people who are willing to buy a unit of the good is uniquely determined by the price.

Question

Quizplus · Accepted Answer

For a good with network externalities, the demand and the willingness to pay of the individual depends not only on the price but also on the number of people using or owning the good. Therefore, the number of people willing to buy a unit of the good is not uniquely determined by the price.

For a Good with Network Externalities, the Number of People