The concept of network externality refers to the case where the utility of a given product is positively related to the number of consumers owning the same product. This concept is no longer restricted to the domain of communication industries, where it was originally introduced. This article first presents the concept, its different modelizations and empirical measures. It then investigates the marketing consequences of network externalities thereby stressing their importance for the study of marketing.
LE NAGARD, E. (1999). Le concept d'externalité de réseau et ses apports au marketing. Recherche et Applications en Marketing, pp. 59-78.