Overview

The effect that one user of a good or service has on the value of that product to other people. When a network effect is present, the value of a product or service is dependent on the number of others using it. Nothing scales as well as a software business, and nothing creates a moat for that business more effectively than network effects.—Tren Griffin

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Two Powerful Mental Models: Network Effects and Critical Mass | Andreessen Horowitz

This post is all about network effects and critical mass. But it's also about applying those concepts as important mental models in business, so I will share a short story about a business decision I once made that required me ...

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