network effect

noun

The higher growth rate of businesses with higher market share in those segments of economy in which the value of a product or service depends on the compounding effects of the number of existing users of the product or a service, as is the case with telephone networks.

Meanings

nounnetwork effect (plural network effects)

plural network effects

  1. economicsThe higher growth rate of businesses with higher market share in those segments of economy in which the value of a product or service depends on the compounding effects of the number of existing users of the product or a service, as is the case with telephone networks.

    Aided by preferential attachment and network effects (the phenomenon of a good or service becoming more valuable the more people who use it), a handful of winners emerge, overshadowing other available options.

    2014, Astra Taylor, chapter 4, in The People's Platform: Taking Back Power and Culture in the Digital Age, Henry Holt and Company, →ISBN

Translations

Chinese Mandarin 網絡效應 /网络效应
  • 網絡效應 /网络效应 (wǎngluò xiàoyìng)higher growth rate
Finnish verkostovaikutus
  • verkostovaikutushigher growth rate
French effet de réseau
  • effet de réseauhigher growth rate
German Netzwerkeffekt
  • Netzwerkeffekthigher growth rate
Japanese ネットワーク外部性
  • ネットワーク外部性 (nettowākugaibusei)higher growth rate
Korean 네트워크 효과
  • 네트워크 효과 (neteuwokeu hyogwa)higher growth rate
Swedish nätverkseffekt
  • nätverkseffekthigher growth rate
Cite this entry
APA

network effect. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/network%20effect

MLA

“network effect.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/network%20effect. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “network effect,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/network%20effect.

Source: network effect on Wiktionary, CC BY-SA 4.0.