Let's talk about network effects. We will first cover theoretical concepts such as "economies of scales", and what economists mean by the term "externality". We will then think about how to compete in markets with network effects. Finally, we will look at a case study of Lotus 1-2-3, a spreadsheet software package from the 1980s. Many things to learn from history!

0:00 Important underlying concepts
0:30 Economies of scale
0:38 Supply-side economies of scale
1:34 Demand-side economies of scale
2:22 Externalities
3:38 Network externalities
4:02 Competition in markets with network externalities
5:33 Direct network effects
6:58 Indirect network effects
8:05 The "chicken and egg problem" with network markets
9:35 Case study (Lotus 1-2-3)
13:53 Returns to compatibility
14:19 License revenues

Narration and script: Christian Peukert
Animations and editing: Margaritha Windisch
Music: Nerdcandy Audio

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