Short Definition
A phenomenon where the value of a product or service increases as more people use it. The more users a network or platform has, the more valuable it becomes to each individual user, seen in social media or digital marketplaces.
Relevance
The network effect refers to how a network becomes more valuable as more people use it. While this can drive exclusionary practices in dominant tech spaces, mutual aid networks and decentralized tech models can leverage this effect to build stronger, more connected communities rooted in collective care.