15/02/2015 Reflections4:NetworkEffects

https://class.coursera.org/ntuecom001/forum/thread?thread_id=2394 1/2

PINNED LOCKED

HelpCenterForums/ Reflections4

Reflections4:NetworkEffects

Subscribeforemailupdates.

Notagsyet.+AddTag

ECommerceMOOCTeam STAFF 3daysago

Reflections4:NetworkEffectsDueDate:17thFeb2015,12:00SGT

Weswitchgearsabitthisweek,andconsiderifwecanapplyourlessonsthisweektoestablished"offline"industries.Asalways,pleaseopenaseparatethreadforeachofyourresponses.DorefertotheGuidelinesforyoursubmissionsifyou'reunclear.

Inapaper[1]intheAntitrustLawJournal,alegalscholarhadoncearguedthefollowing:

CocaColaandPepsiColadrinkersbenefitfromthenetworkoftheirfellowconsumersbe

causeCokeandPepsiarewidelyavailableinrestaurantsandinvendingmachines.

1. Givenwhatyouvelearntthisweekonnetworkeffects,brieflydiscussthepositiveandnegativeexternalitiesthatmayormaynotexistamongsoftdrinkconsumers.Whatisthenetworkthatmayexistinthiscontext?Whatfactorsmayincentivizeexistingconsumersintobringingmoreusersintothisnetwork

2. SoftdrinkmanufacturerssuchasCokeorPepsitypicallyengagethirdpartybottlersintomanufacturingtheirproductandgettingthemtoselltoconsumersdirectly.Whythen,isthisnotanexampleofatwosidedmarket?

3. NewentrantssuchasSodaStreamhavetriedtoenterthesoftdrinkspacethroughinnovativeproductsthatallowcreationoffizzydrinksinconsumerhomes.Givenwhatyouhavelearntthisweek,whatnewstrategy,intermsofnetworksorplatforms,canSodaStreamadopttomaximizetheirsalesandrevenue?Bebriefinyourdescription.

[1]Muris,TimothyJ.TheFTCandtheLawofMonopolization,AntitrustLawJournal,Vol.67,No.3,2000http://papers.ssrn.com/paper.taf?abstract_id=235403(Retrieved9thFeb2015)[Note:thisisnotrequiredreading.]

Pointstonote:

1. DoremembertopostyourresponsesintheReflections4subforumasanewthread,nonanonymously.Wewillneedtoseeyourname.

2. Dofeelfreetoreadotherpostsaswellandseeifyoucanconstructivelyaddtothemthere'sa

15/02/2015 Reflections4:NetworkEffects

https://class.coursera.org/ntuecom001/forum/thread?thread_id=2394 2/2

0

wealthofexperienceouthere!Butremember,onlythequalityofyourpostcountstowardsourevaluation,notthenumberofupvotes.

3. Ifyouseeanyoutofcontext,abusive,insensitiveorplagiarizedposts,dohighlightthemtousintheFlaggedContentsubforum.

flag