... that the consumption behavior of any individual is independent of the consumption of others.1 When the theory of individual behavior is applied to the behavior of many individuals in the market, however, it is important to assess the extent that an individual's demand may be affected by what other people are consuming.2 This assumption distinguishes functional demand as the demand for a commodity due to the qualities inherent in the commodity itself and nonfunctional demand as demand for a good that is due to the factors that are not inherent in the commodity itself. 3 The effect of non-functional demand is also known as network externality.4 Inherent in the desire to be a part of a group, stylish, and fashionable, Bandwagon goods are those whose demand is increased due to the fact that others are also consuming the same commodity.5 In this case when the network externality will have a ...

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