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Metcalfe’s law: not so wrong after all

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  • Leo Hove

Abstract

Briscoe et al. IEEE Spectrum, 43(7), 34–39 ( 2006 ) claim that Metcalfe’s law is “wrong”. One of their arguments is that “if Metcalfe’s Law were true, then two networks ought to interconnect regardless of their relative sizes”. This paper shows that this argument is flawed. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Leo Hove, 2014. "Metcalfe’s law: not so wrong after all," Netnomics, Springer, vol. 15(1), pages 1-8, July.
  • Handle: RePEc:kap:netnom:v:15:y:2014:i:1:p:1-8
    DOI: 10.1007/s11066-014-9084-1
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    References listed on IDEAS

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    5. Madureira, António & den Hartog, Frank & Bouwman, Harry & Baken, Nico, 2013. "Empirical validation of Metcalfe’s law: How Internet usage patterns have changed over time," Information Economics and Policy, Elsevier, vol. 25(4), pages 246-256.
    6. Jinhong Xie & Marvin Sirbu, 1995. "Price Competition and Compatibility in the Presence of Positive Demand Externalities," Management Science, INFORMS, vol. 41(5), pages 909-926, May.
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    8. Esser, P. & Leruth, L., 1988. "Marketing Compatible, Yet Differentiated Products: In Search Of Competitive Equilibria When Network Externalities Are At Work," Papers 8807, Universite Libre de Bruxelles - C.E.M.E..
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    Cited by:

    1. Raghuram Shivram & B. G. Prasad & S. Vishwa Kiran, 2024. "WON: A hypothetical multi-hop ad-hoc wireless ultra-large scale worldwide one network," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(10), pages 4714-4729, October.
    2. Leo Van Hove, 2016. "Measuring the value of mobile telecommunications networks," Netnomics, Springer, vol. 17(3), pages 191-222, November.
    3. Pele, Daniel Traian & Mazurencu-Marinescu-Pele, Miruna, 2019. "Metcalfe's law and herding behaviour in the cryptocurrencies market," Economics Discussion Papers 2019-16, Kiel Institute for the World Economy (IfW Kiel).
    4. Pele, Daniel Traian & Mazurencu-Marinescu-Pele, Miruna, 2018. "Cryptocurrencies, Metcalfe's law and LPPL models," IRTG 1792 Discussion Papers 2018-056, Humboldt University of Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series".
    5. Ginavar Andrei-Theodor & Conda Alexandra Ioana & Pele Daniel Traian & Mazurencu-Marinescu-Pele Miruna & Manea Daniela-Ioana, 2025. "Cryptocurrency Market Analysis: Insights from Metcalfe’s Law and Log-Periodic Power Laws," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 19(1), pages 490-505.
    6. Van Hove, Leo, 2016. "Testing Metcalfe's law: Pitfalls and possibilities," Information Economics and Policy, Elsevier, vol. 37(C), pages 67-76.

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