Reed's law
Network value increases as 2^n, this being the number of possible subgroups within the network / From Wikipedia, the free encyclopedia
Dear Wikiwand AI, let's keep it short by simply answering these key questions:
Can you list the top facts and stats about Reed's law?
Summarize this article for a 10 year old
SHOW ALL QUESTIONS
Reed's law is the assertion of David P. Reed that the utility of large networks, particularly social networks, can scale exponentially with the size of the network.[1]
The reason for this is that the number of possible sub-groups of network participants is 2N − N − 1, where N is the number of participants. This grows much more rapidly than either
- the number of participants, N, or
- the number of possible pair connections, N(N − 1)/2 (which follows Metcalfe's law).
so that even if the utility of groups available to be joined is very small on a per-group basis, eventually the network effect of potential group membership can dominate the overall economics of the system.