Hidden Networks: Network Effects That Don’t Look Like Network Effects

Some network effects (when a network gains more value to its users as more people participate in its platform) don’t show up in the usual metrics. Their hidden nature makes them hard to measure – but they can confer significant long-term competitive advantages. In an insightful article for A16Z.com, D’Arcy Coolican – an Andreessen Horowitz partner and a co-founder of the peer-to-peer lending platform Frank – shines a light on hidden networks, giving useful guidelines for identifying when they’re at work.

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