nudge techniques,” small interventions that encourage people to behave in slightly different ways at critical moments

Network effects make a product more useful as more people use it

What has since become abundantly apparent is the destructive influence of behavioral economics and the so-called "nudge theory" of political decision-making, which relies on and stimuli to steer individual behavior, rather than coercion or restraint. We now know that the "nudge unit," or the "," that advises the successfully convinced the state of their theory that individuals who are too quickly constrained by severe measures will tire and relax their discipline when the epidemic reaches its peak, which is precisely when discipline is needed most. Since 2010, 's economic theory — which he outlines in the book Nudge (2009) — is widely thought to be the best means for producing "efficient state governance." This approach tells us to encourage people, without coercing them, to make the best decisions through the use of "nudges": by using gentle, indirect, comfortable and optional influences upon individuals who are still ultimately free to make their own choices. The application of this "" in the fight against the epidemic has been two-fold: (a) the rejection of any coercive measures to regulate individual behavior and (b) a preference for "barrier gestures": keep your distance, wash your hands, cough into your elbow, self-isolate if you have a fever and all for your own benefit. This wager to rely on soft, voluntary measures was risky: there is no scientific or empirical evidence demonstrating the effectiveness of this approach in the context of an epidemic. And it is now all too clear that this approach entirely failed.

Network effects generate a positive feedback loop that can allow the first product or service that taps into those effects to build an unassailable competitive advantage.

I'm always looking for ways to add network effects to a startup's idea. Investors love those. But network effects are genuinely good to have. So any we come up with in order to feed to investors, they should probably go and make happen.

Network effects can be powerful, but you’ll never reap them unless your product is valuable to its very first users when the network is necessarily small.

A network functions precisely because there’s recognition of mutual need. There’s an implicit understanding that investing time and energy in building personal relationships with the right people will pay dividends. The majority of “one percenters” are in that top stratum because they understand this dynamic — because, in fact, they themselves used the power of their network of contacts and friends to arrive at their present station.

the Internet has made it possible to access global markets and tap into massively scalable distribution channels in a way that wasn’t feasible during earlier eras. But perhaps the most important impact for businesses has been the rising significance and prevalence of so-called network effects that occur when increased usage of a product or service boosts the value of that product or service for other users.

Being a little bit nicer in each interaction can result in a network of broad and strong connections over time.

Craig Newmark simply started e-mailing his friends about local events in 1995; almost twenty-two years later, network effects have kept Craigslist a dominant player in online classifieds despite operating with a skeleton crew and making seemingly no changes to the website design during that entire period! This is where an emphasis on speed also plays an important role. Because Silicon Valley’s entrepreneurs focus on designing business models that can get big fast, they are more likely to incorporate network effects. And because the fierce local competition forces start-ups to grow so aggressively (i.e., blitzscale), Silicon Valley start-ups are more likely to reach the tipping point of network effects before start-ups from less aggressive geographies. One of the motivations for this book is to help entrepreneurs from around the world emulate these successes by teaching them how to systematically design their businesses for blitzscaling. When you design your business model to leverage network effects, you can succeed anywhere.

Sticking to the people we know is a tempting behavior. But unlike some forms of dating. A networker isn't looking to achieve only a single successful union. Creating an enriching circle of trusted relationships requires one to be out there, in the mix, all the time.

A second learning I’ve had has been the power of networking. There is a lot of good will out there; people with ideas, experience, connections, and solutions. These are the same people ready to listen and be inspired by one’s ideas and actions as well.

Remember a networked learning machine's most basic rule: strengthen the connections to those who succeed, weaken them to those who fail.

A network nurtures small failures in order that large failures don't happen as often.