Metcalfe's law states that the value of a telecommunications network is proportional to the square of the number of users of the system (n2). First formulated by Robert Metcalfe in regard to Ethernet, Metcalfe's law explains many of the network effects of communication technologies and networks such as the Internet, social networking, and the World Wide Web. It is related to the fact that the number of unique connections in a network of a number of nodes (n) can be expressed mathematically as <math>n*(n-1)/2</math>, which follows n2 asymptotically. The law has often been illustrated using the example of fax machines: a single fax machine is useless, but the value of every fax machine increases with the total number of fax machines in the network, because the total number of people with whom each user may send and receive documents increases. In fact, Metcalf's law measures the potential number of contacts, i.e. the technological side of a network. However the social utility of a network depends upon the number of nodes in contact. For instance, if Chinese and Non-Chinese don't understand each other the utility of network of users that speak the other language is at zero, and the law has to be calculated for the two networks separately.
See also
- The generalized Network effect of microeconomics.
- Reed's law
External links
- Metcalfe's Law: More Misunderstood Than Wrong?. A co-worker of Bob Metcalfe puts the IEEE Spectrum critique in perspective. Republished in Web 2.0 Journal here.
- Metcalfe's Law is Wrong. Bob Briscoe, Andrew Odlyzko, and Benjamin Tilly, July 2006 IEEE Spectrum. Points out that Metcalfe's Law is wrong, that the value is closer to n log(n)
- Metcalfe’s Law Recurses Down the Long Tail of Social Networking by Bob Metcalfe
- ZDNet: Metcalfe's Law overshoots the mark
- Andrew Odlyzko and Benjamin Tilly paper
- Metcalfe's Law in Reverse, applying Metcalfe's law to form an argument in favour of large, unified networks.
- George Church. The Personal Genome Project. Molecular Systems Biology. 13 December 2005
