Nt1310 Unit 1 Assignment
Network effect
1
Network effect
In economics and business, a network effect (also called network externality or demand-side economies of scale) is the effect that one user of a good or service has on the value of that product to other people.
When a network effect is present, the value of a product or service is dependent on the number of others using it.
The classic example is the telephone. The more people who own telephones, the more valuable the telephone is to each owner. This creates a positive externality because a user may purchase a telephone without intending to create value for other users, but does so in any case. Online social networks work in the same way, with sites like Twitter and
Facebook becoming more attractive as more …show more content…
Therefore, the larger Ted.com network becomes positively correlates to those who benefit from its common-pool resources.
P2P networks positively affect property rights. In reference to property rights, it enables those who create the intellectual property: The right to use the good, The right to earn income from the good, The right to transfer the good to others, The right to enforcement of property rights. Through P2P networks those who provide intellectual property not only have these rights, but they also possess the right to claim their information on a public forum. Due to these rights sharing benefits the intellectual property holders and promotes P2P sharing in a positive way. Those who consume the intellectual property also benefit positively from the sharing of it because they are able to use the information freely with respect to the person who created it. An example of this system in effect is a company called
Music Vault [1]. Music Vault operates on the P2P network Facebook, enabling users who create music to openly and freely collaborate with other artists content. This is a form of remixing that benefits both parties. This is an
1
Network effect
In economics and business, a network effect (also called network externality or demand-side economies of scale) is the effect that one user of a good or service has on the value of that product to other people.
When a network effect is present, the value of a product or service is dependent on the number of others using it.
The classic example is the telephone. The more people who own telephones, the more valuable the telephone is to each owner. This creates a positive externality because a user may purchase a telephone without intending to create value for other users, but does so in any case. Online social networks work in the same way, with sites like Twitter and
Facebook becoming more attractive as more …show more content…
Therefore, the larger Ted.com network becomes positively correlates to those who benefit from its common-pool resources.
P2P networks positively affect property rights. In reference to property rights, it enables those who create the intellectual property: The right to use the good, The right to earn income from the good, The right to transfer the good to others, The right to enforcement of property rights. Through P2P networks those who provide intellectual property not only have these rights, but they also possess the right to claim their information on a public forum. Due to these rights sharing benefits the intellectual property holders and promotes P2P sharing in a positive way. Those who consume the intellectual property also benefit positively from the sharing of it because they are able to use the information freely with respect to the person who created it. An example of this system in effect is a company called
Music Vault [1]. Music Vault operates on the P2P network Facebook, enabling users who create music to openly and freely collaborate with other artists content. This is a form of remixing that benefits both parties. This is an