Question

Happely provides a messaging service through its platform. The hiring company and graphic designer must negotiate...

Happely provides a messaging service through its platform. The hiring company and graphic designer must negotiate their price and communicate about the project through the provided messaging service. The contact information of the company and the designer are not divulged to each other; and if they communicate off-platform, Happely will not arbitrate any disagreements between the two parties. This is an example of:

a. Network effects

b. Governance

c. Corporate Social Responsibility

d. Same-side network effects

Business   Economics   
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Answer #1

Ans; this is an example of same side network effects. so the correct answer is option D.

Explanation: network effects means increased number of people improve the value of good. for eg. internet. there is two types of network effects.

same side network effect ( direct network effect)  and indirect network effects. same side network effects are when user growth on one side of the platform effects other users on that same side. for eg. developers want more companies using the software they are skilled in.but in cross side networks, developers want to build for platforms that have the most users.

Another example of same side network is gamers want more of their friends on the same platform as they play can together.

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