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Economists developed the theory of network effects in the 1970s and burnished it in the 1990s, and business gurus, entrepreneurs, and the tech media enshrined it as one of the guiding lights of the new economy. It works like this: a company quickly enters a new market and attracts customers, and those customers attract more customers, and so on. In turn, the first mover experiences explosive growth and assumes a dominant market position while earning wonderful profits. End of story.
"Why Winner-Takes-All Thinking Doesn't Apply to the Platform Economy" is from hbr.org, published on May 4, 2016.