Editing Network effect (section)

=== Evidence and consequences ===
[[File:Online Diversity.jpg|thumb|right|alt=Dynamics of activity on online platforms, as indicated via posts in social media platforms reveal long-term economic consequences of network effects in both the offline and online economy.|Clues about the long term results of network effects on the global economy are revealed in new research into Online Diversity.]]

While the diversity of sources is in decline, there is a countervailing force of continually increasing functionality with new services, products and applications — such as music [[Streaming media|streaming services]] (Spotify), [[file sharing]] programs (Dropbox) and [[Instant messaging|messaging platforms]] (Messenger, WhatsApp and Snapchat). Another major finding was the dramatic increase in the ''infant mortality'' rate of websites — with the dominant players in each functional niche - once established guarding their turf more staunchly than ever.

On the other hand, growing network effect does not always bring proportional increase in returns. Whether additional users bring more value depends on the [[commoditization]] of supply, the type of incremental user and the nature of [[Substitute good|substitutes]].<ref name="The Dynamics of Network Effects">{{Cite web |last1=Coolican |first1=D'Arcy |last2=Jin |first2=Li |date=2018-12-14 |title=The Dynamics of Network Effects |url=https://a16z.com/2018/12/13/network-effects-dynamics-in-practice/ |access-date=2022-04-07 |website=Andreessen Horowitz |language=en-US |archive-date=2023-02-04 |archive-url=https://web.archive.org/web/20230204153359/https://a16z.com/2018/12/13/network-effects-dynamics-in-practice/ |url-status=live }}</ref> For example, social networks can hit an inflection point, after which additional users do not bring more value. This could be attributed to the fact that as more people join the network, its users are less willing to share personal content and the site becomes more focused on news and public content.<ref name="The Dynamics of Network Effects"/>