Editing Network effect (section)

=== Telephone ===
Network effects are the incremental benefit gained by each user for each new user that joins a network.<ref>{{Cite web|date=2018-02-15|title=What are Network Effects? Indirect and Direct Network Effects|url=https://www.applicoinc.com/blog/network-effects/|access-date=2021-04-24|website=Applico {{!}} Platform Experts|language=en|archive-date=2021-04-28|archive-url=https://web.archive.org/web/20210428195835/https://www.applicoinc.com/blog/network-effects/|url-status=live}}</ref> An example of a direct network effect is the [[telephone]]. Originally when only a small number of people owned a telephone the value it provided was minimal. Not only did other people need to own a telephone for it to be useful, but it also had to be connected to the network through the users home. As technology advanced it became more affordable for people to own a telephone. This created more value and utility due to the increase in users. Eventually increased usage through exponential growth led to the telephone is used by almost every household adding more value to the network for all users. Without the network effect and technological advances the telephone would have nowhere near the amount of value or utility as it does today.