69

Systems

Metcalfe's Law

A network's value grows faster than its size.

The article

If

A network of n nodes has n(n−1)/2 possible connections, so its value was claimed to scale with n². The exponent is disputed — n log n fits real networks better — but the shape holds: each new node adds value to every existing node, which is why networks tip rather than grow smoothly.

Then

For a product whose value comes from other users, spend early effort on the smallest network that is already useful to its own members, not on features. For a team, do the opposite and cut connections.

Unless

The Same Quadratic Is a Costconnections are an asset between users and a liability between colleagues; Brooks' Law is Metcalfe's Law with the sign flipped

Source

Attributed to Robert Metcalfe (c. 1980); the n log n critique is Bob Briscoe, Andrew Odlyzko & Benjamin Tilly, Metcalfe's Law is Wrong (IEEE Spectrum, July 2006).

Go to the source

See also