The article explores how the size of a company affects the quality of its product in markets with positive and negative network effects. Larger firms offer higher quality products in positive network effects, but lower quality in negative effects. Consumers have different preferences for quality, and firms compete on prices. The study shows that in a competitive market, congestion cannot be too severe in an asymmetric equilibrium. Interestingly, having more firms in the industry can actually increase individual firms' profits. The number of firms in a market without fixed costs is limited by expectations and price competition.