Cash Advance Loans Cash Advance Loans

The Network Effect

June 17, 2011

Why is social networking via web so effective as compared to snail-mail, email, TV or phone? The reason lies in the structure of network and connections it allows to form (see the plot below). Take for example television network , it’s a one-to-many type of network and the number of possible connections such a network allows depends on how many people own/watch TV. Such networks are like one-way traffic where users don’t have any capability to interact with other users in the network system. So basically it’s networking capacity scales as a function of N, where N is the number of people (Sarnoff’s Law). Emails and phones allow multiple connection possibilities between people in the network which scales as N^2-N (Metcalfe’s Law). Social networking is just completely another beast which expands exponentially with the size of people in the network as 2^N-N-1 (Reed’s Law). Social networking allows formation of groups and sub-groups and there lies the immensely powerful network effect. In a group of N people, you can from 2^N such groups and thereby the potential networking capacity increases exponentially. That’s what Facebook and other social networking websites are trying to capitalize on. How strong are these networks and connections, that’s a different story and will be subject of my other post sometime later.

Top image credit: Facebook | Paul Butler

Filed under: Trivia

Tags:

Leave a Comment

(required)

(required), (Hidden)

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

TrackBack URL  |  RSS feed for comments on this post.


Subscribe




Video of the Day

Categories

Archives

Recent Posts

My Links

Pages

Google News
U.S. : Top News

RSS CNN IBN News

Tag Cloud

Music Video of The Day

RSS TED Talks

Born on this day

October 29, 2020
1899 Akim Tamiroff
1925 Robert Hardy
1940 Jack Shepherd
1941 George Davis
1947 Richard Dreyfuss
1949 Kate Jackson
1964 Yasmin Le Bon
1964 Michael Vaughan
1971 Winona Ryder
Joe's