A note from Daniel

The use of up-front efforts to bootstrap the network: One critique of subsidizing networks in this way is that it's like "selling a dol lar for ninety cents." Yes, it would be ideal to be able to grow a network with positive unit economics from day one, but sometimes it's just not possible. Or it might be too slow. A new networked product is better off taking on the risk of subsidizing the network up front, and then improving the economics over time.

Daniel Cold Start Problem, page 160 · September 17, 2023 Save to shelf
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