The Cold Start Problem is directly related to network effects. Network effects refer to the phenomenon where a product or service gains additional value as more people use it. However, when a networked product is launched, it faces a challenge: it needs people to use it for it to be worth anything. This is the Cold Start Problem. It's about how to start the very first network without a basis to work from. In other words, the Cold Start Problem is the initial hurdle to achieving network effects.
When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it...
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