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Metcalf's Law: The Value of a network scales as the square of the number of those connected to it.

Value = n²

Value: economic, personal, societal,....
Double the network = four times the value!
"network economics"
"network externalities"
Bob Metcalf -inventor of ethernet, 3Com founder.

Implications? If my network is bigger than your network, I can derive more value from it.

Positive Feedback:

If I can do that, then my network will continue to grow!
That makes mine bigger still.
Ouch, it hurts to be on the losing side
Winner take all markets
Many legal and economic experts think monopolies are normal in eBusiness!

eBusiness: The Hope, the Hype, the Power, the Pain

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(© Jack M. Wilson, 1999, 2000)

( © J. Wilson 1999, 2000 )