A note from Daniel

First, the concept of atomic networks provides the clearest goalposts for an upstart network--it's all about splitting off, or creating from scratch, a distinct and higher-density atomic network. Initially, Craigslist seemed huge, both in audience size and the maturity of the features, rel ative to the smaller niche of renting rooms. However, as Airbnb built a dense community, city by city, it wasn't long before a given city had more comprehensive inventory than Craigslist, even if the aggregate number of listings was lower. Network density beats total size. Once a niche player forms their atomic networks and begins to branch out, they enjoy network effects that become very hard to stop, particularly in their initial market.

Daniel Cold Start Problem, page 334 · October 4, 2023 Save to shelf
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