Question
Supermarkets experience important economies of scale as larger supermarkets will buy their goods at a lower price from their suppliers than smaller ones.End customers will
Supermarkets experience important economies of scale as larger supermarkets will buy their goods at a lower price from their suppliers than smaller ones.End customers will thus benefit from shopping at the larger supermarkets as they will typically charge lower prices than their smaller counterparts.
Can we infer from the above that supermarket chains are one-sided networks with positive network effects between the end customers?Or are they two-sided networks with positive cross-side network effects between end customers and the suppliers to the supermarkets.Or is neither of these claims correct?Please explain briefly.
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