Moore and Metcalfe’s laws
17 نوفمبر 2021 2021-11-15 1:29Moore and Metcalfe’s laws
What is the economic value of Moore and Metcalfe’s laws together?
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
continuing growth.7
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
beneficial.
