Moore and Metcalfe’s laws17 نوفمبر 2021 2021-11-15 1:29
Moore and Metcalfe’s laws
What is the economic value of Moore and Metcalfe’s laws together?
Together, they mean that continued network expansion network is inevitable.
Metcalfe’s Law shows us that expanding the network increases its value. Moore’s Law tells us that while capability steadily increases, the cost of those capabilities continually drops.
Metcalfe’s low states yhat the benefit of any connection is increasing while moore’s law states that cost of obtaining more bandwith is decreasing..
This growth be economically beneficial and these laws also mean that the cost over benefit ratio shrinks as more users join
Together, Moore’s Law and Metcalfe’s law represent
complementary concepts, one operating on the supply side and the other
operating on the demand side. On the supply side, in most cases, growth
eventually leads to diseconomies of scale that eventually make further
expansion in size increasingly costly. Moore’s Law suggests that
digitization creates a systematic reduction in costs that can offset such
increases in costs.6 So long as the increase in costs caused by expansion
in size remains smaller than the reduction in costs associated with
Moore’s Law, costs should remain manageable even in the face of
On the demand side, Metcalfe’s Law says that the number of
potential connections increases quadratically with the number of nodes.
To the extent that expanding the number of potential connections
increases the value of a network, Metcalfe’s Law provides another
reason for believing that growth in network size will be economically
According to Moore’s Law, the cost of obtaining a given level of bandwidth is dropping, while Metcalfe’s Law states that the benefit of such connection is increasing exponentially. Thus, the cost/benefit ratio of Internet access shrinks considerably over time and with new subscribers to its services