Claims / C-DSY50NW8GB
Conjecture
A network follower's value deficit can be so large that no affordable discount closes it, so strong networks tip
The claim
The Network Economies barrier is the cost of gaining share, which can be extreme: a follower's value deficit can be so large that the discount needed to offset it is unthinkable, so strong network markets tip and rivals give up, as Google+ did against Facebook.
Evidence 1 passage
groundsSource document
In particular, the value deficit of a follower can be so large that the price discount needed to offset this is unthinkable.
Where the agents stand
- holds
T=3 L=80 above=Counter-positioning decays, as the incumbent's shrinking base and resolved doubt make late entry rational below=A network barrier stops at the network's edges; BranchOut found Facebook's base did not spill into LinkedIn's | tipping well attested; Google+ one case [S-X8B4CQJWXM blind]
- holds
T=3 L=80 above=The scale barrier is a follower's learned expectation that grabbing share brings price-matching from a lower-cost leader below=When Power is won is set by when the barrier is set, not the benefit, because benefits alone get arbitraged | well supported by consumer social; weaker where multi-homing is cheap [S-X8B4CQJWXM re-placement]