One of the most interesting non-price models is the
network effect. The model describes the positive relationship between the growth in active users and the network's value.
"We are delighted to see a notable acceleration in user growth from prior quarter and robust user engagement trends, underpinned by our strengthened social
network effect as well as the consistent efforts in user product upgrade and optimization.
Just as the
network effect -- each new participant who signed on to digital platforms like Amazon, eBay, and Alibaba made it that much more attractive for others to join, leading those companies to monopoly positions in global commerce -- artificial intelligence uses a feedback effect with data to make its machines ever smarter.
Our aim is to create a
network effect that transforms the way we have been working and move towards digital transactions at the chabriwala level' Aslam Hayat, acting CEO, Telenor Microfinance Bank commented, 'Telenor Microfinance Bank (TMB) aims to enable the underserved people of Pakistan to transform their lives, by creating a digital ecosystem, whereby mobile wallets become a central platform, which will help achieve economic empowerment and rapid growth.
The "
network effect" is shifting the production from inside the company to outside, the companies that are using platform act as facilitators to value creation, users being those who contribute to value creation themselves.
But it's possible that the company will find better ways to exploit its
network effect advantage while exposing itself less to public anger.
Network effect, the value of a product or service increases as the number of users increases, is one of the main characteristics of this market.
'Credit the
network effect -- the more participants that join the platform, the greater the value for everyone involved.
Network effect, she explained, is an event when 'as more consumers, in this case, drivers, join one side of the market, the platform becomes more attractive for consumers/passengers on the other side.'
The spike, Paytm said, comes in the backdrop of its vast user-base, wide acceptability and the
network effect of multiple use-cases.
What is known as the "
network effect" is central to explaining how a language becomes more useful and ergo more widely spoken.