network effect

network effect definition - business

network effect

The increasing value of a good or service as new users are added. For example, a class reunion Internet site becomes a more valuable resource to each user as a greater number of people register and participate.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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