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Definition[]

Metcalfe's Law says that the value of a network is equivalent to the square of the number of connected users of the system.[1] In other words, as networks grow, the utility of being connected to the network not only grows, but does so exponentially. Thus when a person is added to the network, all network members are affected.

Overview[]

Metcalfe

As the bandwidth available through the network continues to grow, Metcalfe's Law dictates that the value of a connection increases exponentially. The ratio of the cost of Internet access to the value it provides plummets over time. And as it plummets, connectivity and higher-bandwidth connections become that much more important, generating more usage and more capital to upgrade the network.

References[]

  1. “Metcalfe’s Law” is named after Bob Metcalfe, the inventor of the Ethernet.

See also[]

External link[]

  • Bob Briscoe, Andrew Odlyzko, and Benjamin Tilly, "Metcalfe's Law is Wrong," IEEE Spectrum, July 2006 (full-text).
  • George Gilder, "Metcalfe's Law and Legacy," Forbes ASAP, Sept. 13, 1993 (full-text).
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