Leo Van Hove , Michal Polasik , Radoslaw Kotkowski
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Abstract
Recent papers assume that whereas the value of ‘traditional’ communications networks follows Metcalfe's law – that is, grows with the square of the number of users – the value of group-forming network platforms should increase faster. The papers see evidence in the fact that the advertising revenues of platforms such as Facebook and Tencent follow a cube law or stronger. We argue that such tests do not make much sense, as they lack a theoretical justification. Growth laws such as Metcalfe's and Reed's were conceived with purely one-sided networks in mind, reason in terms of utility for users, and have little to say about the monetisation of the value created. The results of the very papers that we discuss show that the laws have no generality. We also provide a counterexample of our own and proffer an alternative explanation.
期刊介绍：
Technology in Society is a global journal dedicated to fostering discourse at the crossroads of technological change and the social, economic, business, and philosophical transformation of our world. The journal aims to provide scholarly contributions that empower decision-makers to thoughtfully and intentionally navigate the decisions shaping this dynamic landscape. A common thread across these fields is the role of technology in society, influencing economic, political, and cultural dynamics. Scholarly work in Technology in Society delves into the social forces shaping technological decisions and the societal choices regarding technology use. This encompasses scholarly and theoretical approaches (history and philosophy of science and technology, technology forecasting, economic growth, and policy, ethics), applied approaches (business innovation, technology management, legal and engineering), and developmental perspectives (technology transfer, technology assessment, and economic development). Detailed information about the journal's aims and scope on specific topics can be found in Technology in Society Briefings, accessible via our Special Issues and Article Collections.
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