信息经济学第四章信息数字产品.pptVIP

Demand Positive NetworkExternality: Bandwagon Effect Quantity (thousands per month) Price ($ per unit) D20 20 40 60 80 100 D40 D60 D80 D100 Pure Price Effect 48 Suppose the price falls from $30 to $20. If there were no bandwagon effect, quantity demanded would only increase to 48,000 $20 $30 Chapter 4 Slide * Demand Positive NetworkExternality: Bandwagon Effect Quantity (thousands per month) Price ($ per unit) D20 20 40 60 80 100 D40 D60 D80 D100 Pure Price Effect $20 48 Bandwagon Effect But as more people buy the good, it becomes stylish to own it and the quantity demanded increases