A note from Daniel

Social platforms often monetize users by providing social status, but status has value when there's more people in a network. For example, on Tinder, users can send a "Super Like," which lets a potential match know that you really like them. A feature like this is most useful once there's a rich network of potential suitors and matches, giving users more of a reason to try to stand out. Same with virtual goods in multiplayer games like Fortnite, which has generated hundreds of millions in revenue on "emotes"—the virtual dances that differentiate a player. This only holds value if many of your friends play and appreciate the premium emotes you've purchased. As a result, a more developed network creates an incentive for people to invest in their standing within the game this is the Economic Effect at work.

Daniel Cold Start Problem, page 228 · September 23, 2023 Save to shelf
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