Extensive network effects may drive a market toward natural monopoly because consumers tend to choose a common,standard product that everyone else is using.

Network Effects

The effect that additional users of a good or service have on the value of that product to others, typically increasing the value with more users.

Natural Monopoly

A market structure where a single firm can provide a good or service at a lower cost than any potential competitors, usually due to economies of scale.

Standard Product

A product that is uniform in quality and specifications, produced in large quantities, and often interchangeable with similar products from other manufacturers.