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A Classroom Demonstration for Teaching Network Effects

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  • James Sawler

Abstract

The introduction of the concept of network effects is useful at the principles level to facilitate discussions of the determinants of monopoly, the need for standards in high-tech industries, and the general complexity of real-world competition. The author describes a demonstration and an extension that help students understand how consumers make choices in markets where network effects are prominent and how these choices affect market outcomes. He then provides an outline for a classroom discussion of the results.

Suggested Citation

  • James Sawler, 2007. "A Classroom Demonstration for Teaching Network Effects," The Journal of Economic Education, Taylor & Francis Journals, vol. 38(2), pages 153-159, April.
    • Handle: RePEc:taf:jeduce:v:38:y:2007:i:2:p:153-159
    DOI: 10.3200/JECE.38.2.153-159
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    Cited by:

    1. Islam, Shahidul & Manaloor, Varghese, 2011. "Teaching introductory economics to students of different majors: Challenges and opportunities," MPRA Paper 107277, University Library of Munich, Germany, revised 2011.

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