ch04个体需求和市场需求.pptVIP

NETWORK EXTERNALITIES 4.5 The Bandwagon Effect Positive Network Externality: Bandwagon Effect A bandwagon effect is a positive network externality in which the quantity of a good that an individual demands grows in response to the growth of purchases by other individuals. Here, as the price of the product falls from $30 to $20, the bandwagon effect causes the demand for the good to shift to the right, from D40 to D80. Figure 4.16 NETWORK EXTERNALITIES 4.5 The Snob Effect Negative Network Externality: Snob Effect The snob effect is a negative network externality in which the quantity of a goo