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Network effect
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==Interoperability== [[Interoperability]] has the effect of making the network bigger and thus increases the external value of the network to consumers. Interoperability achieves this primarily by increasing potential connections and secondarily by attracting new participants to the network. Other benefits of interoperability include reduced uncertainty, reduced lock-in, [[commoditization]] and competition based on price.<ref>{{cite book|author=Carl Shapiro and Hal R. Varian|url=https://archive.org/details/informationrules00shap|title=Information Rules|publisher=Harvard Business School Press|year=1999|isbn=0-87584-863-X|pages=229|url-access=registration}}</ref> Interoperability can be achieved through [[standardization]] or other cooperation. Companies involved in fostering interoperability face a tension between cooperating with their competitors to grow the potential market for products and competing for market share.<ref>{{cite book|author=Carl Shapiro and Hal R. Varian|url=https://archive.org/details/informationrules00shap|title=Information Rules|publisher=Harvard Business School Press|year=1999|isbn=0-87584-863-X|pages=227|url-access=registration}}</ref>
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