Lec 8

Question 1

Law that states asymptotically relationship betwen users and value

Answer 1

Metcalfes Law

Question 2

Metcalfes Law equation,

closing in on (but never reaching)

Answer 2

(n(n-1))/2

(n^2)/2

Question 3

Congestion Effect

Answer 3

Negative Network Effects

Question 4

3 Value Sources in Networks

Answer 4

1. Exchange
2. Staying Power
3. Complimentary Benefits

Question 5

3 Platform Ecosystems Ideally

Answer 5

1. Exchange of Value
2. Want to make it easy as possible for products (API)
3. Cloud-based infrastracture

Question 6

What does a start-up need

Answer 6

1. Email
2. Data Storage
3. Office suite

Question 7

One sided market example

Two sided market example

Answer 7

1. Messaging

2. AirBNB

Question 8

• Same-side exchange benefits
• Cross-side exchange benefits
• Positive feedback loops

Answer 8

One sided and Two sided market
Only Two sided market
Only Two sided market