Modelling the growth of the network value

Antonio Scala and Marco Delmastro

Chaos, Solitons & Fractals, 2024, vol. 185, issue C

Abstract: We investigate the evolution of network effects, specifically focusing on the emerging paradigm of third-generation networks known as group-forming networks (GFNs). In contrast to traditional views where network value adheres to Metcalfe’s quadratic growth or Sarnoff’s linear growth, GFNs, such as social networks and community-centric platforms like Apple, Microsoft, and Google, exhibit a distinct exponential growth pattern in network value as postulated by Reed’s hypothesis.

Keywords: Exponential growth; Network effects; Superlinear dynamics; Network platforms (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chsofr:v:185:y:2024:i:c:s0960077924006854

DOI: 10.1016/j.chaos.2024.115133

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