MIS 302F Lecture Notes - Lecture 11: Lyft, Bitcoin, Uber Eats

• School: UT-Austin
• Department: Management Information Systems
• Course: MIS 302F
• Professor: S Provost

Document Summary

Network effects class exercise march 25, 2019. Fill in three examples below; describe for each the nature/strength of sources of value associated with network effects. One-sided and/or two-sided market? (1) exchange (2) staying power. One-sided for users; two-sided for advertisers/ app developers. For advertisers, more users = more conversion ($) from ads. Strong: despite recent struggles, fb has 2. 3 billion users and is unlikely to fold. Switching costs from data: posted content / friend lists. But also two-sided in that some users are exclusively vendors and others buyers. More drivers using the app = quicker service and lower prices add value for riders. Strong: more bitcoin users (and more vendors / institutions / atms, etc) create more transaction opportunities for bitcoin users. Product selection (long tail) more customers attract more sellers. Strong: market leader uber has squandered much of its lead time with a spate of scandals, but still huge global presence.