A note from Daniel

Where coupons intersect with network effects is in the problem of getting a particular company's new products into grocery stores. Grocery stores are a physical embodiment of a multi-sided network, after all—shoppers on one side, and food producers on the other—but with the physical limitations of retail shelving space. As a result, if consumers aren't asking for a new product, grocery stores aren't going to carry it, and if grocery stores won't carry it, consumers can never try it. It's a classic chicken-and-egg problem. Coupons presented a solution to the problem.

Daniel Cold Start Problem, page 153 · September 17, 2023 Save to shelf
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