The network effect is a phenomenon in which the value of an item or service increases as the number of individuals or participants increases. The network effect may be seen on the Internet. The Internet had few users at first since it was of little utility to anybody save the military and a few research scientists. However, as more people gained access to the Internet, more material, information, and services were created. The growth and enhancement of websites drew in more users who wanted to interact and do business with one another. As the Internet’s traffic grew, it became more valuable, resulting in a network effect.