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Information Rules:Important IdeasA Strategic Guide to the Network Economy Positive feedback Network effects Returns to scaleNetworks and Positive Feedback Demand side Supply sideCarl Shapiro Hal R. Varian 2Positive FeedbackSources of Positive Feedback Supply side economies of scale Strong get stronger, weak get weaker Negative feedback: stabilizing Makes a market tippy Examples: VHS v. Beta, Wintel v. Apple Winner take all markets3Network
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