Markets with network effects may result in inefficient equilibrium outcomes. With simultaneous adoption, users may fail to coordinate towards a single agreed-upon product, resulting in splintering among different networks, or may coordinate to lock-in to a different product than the one that is best for them.
maRKets with netwoRk eFFeCts maY reSUlt In iNeFfIcIenT equiLiBRIum oUtComes. WITh simuLTANeOus adoption, useRs may fail to coorDInate towaRDs a sInglE agreed-UpoN pROduct, reSulTIng iN splInteRing amoNg dIFFERent nEtWOrks, oR May Coordinate to LOCk-in to a dIfferENt producT Than thE one THat iS best for thEM.