Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PC Sector Round Table -- Ignore unavailable to you. Want to Upgrade?

To: Pierre-X who wrote (80)	3/20/1998 11:04:00 AM
From: Jonathan Bird	Read Replies (1) \| Respond to of 2025

The value of the OS to the first customer goes up with every OS purchase by succeeding customers, since the installed base grows, and attracts more and more developers to create applications for it. First, the increased user base benefits applications buyers through a positive externality. It does not increase the value of the OS for those who already bought an OS unless they choose to buy more applications and then you are on to a different thing with a different positive externality. A true networked externality is self contained. Second, an additional OS sale does not have a networked externality because value for all parties does not go up through increased connectedness. That connectedness part is what makes it a "network" externality. Otherwise it is just a positive externality. If there were only one telephone is it worth anything? no. Two, yes. Three much more so. This also benifits phone sex operators and customers thereof but thats another thing. Networked Externalities are very special this way. The effect cascades very rapidly in an exponential manner and it is marvelous to think about. Positive externalities are a dime a dozen. The effects cascade only fractionally. Anyway I only brought it up because you said you were interested. Sorry to hear that you hate it already. :) Jon Bird