Then Pacific Bell carries it to the San Francisco subscriber. These are all complementary components of the network. See the example of the information superhighway . Networks exhibit positive consumption and production externalities. Please give examples.
Network externalities can arise directly or indirectly.
This is an example of a direct network externality. In these cases, the value of an operating system is higher when there is a large number of applications that can run under it. The combination of these effects makes the value that a consumer receives from an OS higher when the sales of the OS are higher. Similar reasoning shows the existence of network externalities in any good that requires a distribution or a repair network, or, more generally, requires a complementary good. It seems that many industries exhibit network externalities.