## 2 March 2008

### Metcalfe’s Law: more misunderstood than wrong?

An interesting discussion of Metcalfe’s Law Metcalfe's Law: more misunderstood than wrong?

The industry is at it again–trying to figure out what to make of Metcalfe’s Law. This time it’s IEEE Spectrum with a controversially titled “Metcalfe’s Law is Wrong”. The main thrust of the argument is that the value of a network grows O(nlogn) as opposed to O(n2). Unfortunately, the authors’ O(nlogn) suggeston is no more accurate or insightful than the original proposal.
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The typical statement of the law is “the value of a network increases proportionately with the square of the number of its users.”
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The unit of measurement along the X-axis is “compatibly communicating devices”, not users.
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Title of graph: "The Systemic Value of Compatibly Communicating Devices Grows as the Square of Their Number"

Posted by mofoghlu at March 2, 2008 4:34 PM
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