davidgasquez.com
馃摎 Personal bits of knowledge
1# Network Effects
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3Networks rule our world. From the chemical reaction pathways inside a cell, to the web of relationships in an ecosystem, to the trade and political networks that shape the course of history.
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5[Network effects occur when the value of a product or service is subject to the number of users. A positive network effect means that a product or service becomes more valuable to its users as more people use it.](https://julian.digital/2021/12/20/the-power-of-defaults/)
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7Network [diffusion](http://web.archive.org/web/20240705113531/https://meltingasphalt.com/interactive/going-critical/) is the way things move and spread, somewhat chaotically, across a network. For example:
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9- Infectious diseases jumping from host to host within a population.
10- Memes spreading across a follower graph on social media.
11- A wildfire breaking out across a landscape.
12- Ideas and practices diffusing through a [[culture]].
13- Neutrons cascading through a hunk of enriched uranium.
14- Economies of scale. More scale means more scale.
15- More customers means more social proof means more customers.