In this publication, I shall endeavour to explore an issue germane to the realm of commercial psychology, whilst concomitantly striving to correlate it with the quotidian. The issue under discussion will be the Network Effect or lack thereof.

The network effect is a significant occurrence whereby the worth of a particular commodity or service escalates proportionately as its user base expands. This concept highlights the integral role played by network effects in enhancing the performance and relevance of products and services. 

Network effects are observed in several instances, but not all, for instance, the presence of more vehicles on the streets or more individuals in museums does not derive any benefit from these factors. Conversely, network effects come into play in other scenarios, as demonstrated by the likes of Uber, TikTok, Wikipedia or Facebook.

The learning of English language skills can also reap benefits from the phenomenon of network effects. Increased utilization of the English language facilitates the acquisition and utilization of the language by individuals. Furthermore, in the event that individuals of Polish origin exhibit enhanced aptitude in the English language, it follows that the English language proficiency of every individual of Polish descent would consequently be enriched. 

The rationale behind the mutualistic nature of social interactions can be attributed to the advantages gleaned from shared progress. Consequently, this translates into streamlined communication and enhanced facilitation of commercial engagements with individuals from diverse national backgrounds. 

Over the past decade or two, there has been a growing focus on the acquisition of the English language in Poland. The learning of the English language has become an essential component of children's curricular instruction, and it is further noted that the utilization of the English language is increasingly pervasive in professional settings and in urban locales boasting diverse international populaces and visitors. It is probable that this trend will persist, ultimately resulting in an elevated proficiency of the English language within Poland in the coming years. 

Ultimately, it can be ascertained that the network effect represents a potent notion that has immensely revolutionized various sectors and provisions. The phenomenon of facilitating English language acquisition through increased usage by a larger number of individuals is noteworthy. Specifically, the more individuals engaging in the practice of speaking English, the inherent simplicity and accessibility of acquiring and utilizing the language increases. From an academic standpoint, it is posited that if the inhabitants of Poland persist in enhancing their fluency in the English language, the nation shall reap the numerous benefits that accrue from seamless communication with individuals from diverse cultures across the globe.

Network effects and no network effect - the distinctions between them


Scientific bibliography:

  1. Katz, M. L., & Shapiro, C. (1985). Network externalities, competition, and compatibility. The American Economic Review, 75(3), 424-440.
  2. Farrell, J., & Saloner, G. (1985). Standardization, compatibility, and innovation. The RAND Journal of Economics, 16(1), 70-83.
  3. Hagiu, A., & Wright, J. (2020). Multi-sided platforms. Journal of Economic Literature, 58(4), 1015-1052.
  4. Granovetter, M. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360-1380.
  5. Boudreau, K. J., & Lakhani, K. R. (2015). “Open” disclosure of innovations, incentives and follow-on reuse: Theory on processes of cumulative innovation and a field experiment in computational biology. Research Policy, 44(1), 4-19.

Important words:

  • Network effects
  • Positive feedback loop
  • Winner-takes-all dynamic
  • Fragmented market
  • Compatible
  • Standardization
  • Multi-sided platforms
  • Weak ties
  • Cumulative innovation
  • Field experiment