Economic network effect, which is how a business model—including profitability and unit economics—improves over time as a network grows. This is sometimes driven by what are called data network effects—the ability to better understand the value and costs of a customer as a network gets larger. This helps in driving higher efficiency when promotions, incentives, and subsidies into a network. The Economic Effect also can grow revenue by increasing conversion rates, by building features for the network as opposed to tools for the tool.
