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Network Effect

A model of two firms competing for market share in the presence of network externalities, illustrating path dependence.  The attractiveness of each firm’s product to customers depends on the size of the installed base (the network of users).  See section 10.8.
This AnyLogic model is based on materials from the book "Business Dynamics: Systems Thinking and Modeling for a Complex World" by John Sterman, (c) 2000 McGraw Hill.

The model was created with AnyLogic - simulation software / Market modeling