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Startups in social platforms often rely on the network effect to outpace competitors, because each additional user increases the service's value.
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Startups in social platforms often rely on the network effect to outpace competitors, because each additional user increases the service's value.
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Related words
network effect
Noun
Japanese Meaning
（経済学）製品やサービスの価値が、既存の利用者数の増加に伴い複利的に向上する現象。利用者が増えるほど、その製品やサービスがより有用になり、企業は高い市場占有率を獲得しやすくなる。この現象は、電話網などで確認できるように、ネットワークの規模が価値を左右する場合に見られる。
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