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A network effect arises whenever

mbowdish

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A network effect arises whenever

A network effect arises whenever

• firms in an oligopolistic industry engage in a zero-sum game.

• a consumer's willingness to purchase a good or service is influenced by how many others also buy or have bought the item.

• firms in an oligopolistic industry engage in limit pricing.

• a producer's willingness to produce a good or service is influenced by how many other firms also produce or have produced the item.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

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