Added to Favorites

Related Searches

Reed's law is the assertion of David P. Reed that the utility of large Network, particularly social networks, can scale exponentially with the size of the network.## Derivation

Given a set A of N people, it has $2^N$ possible subsets. This is not difficult to see, since we can form each possible subset by simply choosing for each element of A one of two possibilities: whether to include that element, or not.## Quote

From David P. Reed's, "The Law of the Pack" (Harvard Business Review, February 2001, pp 23-4):## See also

## References

## External links

The reason for this is that the number of possible sub-groups of network participants is $2^N\; -\; N\; -\; 1\; ,$, where $N$ is the number of participants. This grows much more rapidly than either

- the number of participants, $N$, or
- the number of possible pair connections, $frac\{N(N-1)\}\{2\}$ (which follows Metcalfe's law)

so that even if the utility of groups available to be joined is very small on a peer-group basis, eventually the network effect of potential group membership can dominate the overall economics of the system.

However, this includes the (one) empty set, and N Singletons, which are not properly subgroups. So $2^N\; -\; N\; -\; 1$ subsets remain, which is exponential, like $2^N$.

- "[E]ven Metcalfe's Law understates the value created by a group-forming network [GFN] as it grows. Let's say you have a GFN with n members. If you add up all the potential two-person groups, three-person groups, and so on that those members could form, the number of possible groups equals $2^n$. So the value of a GFN increases exponentially, in proportion to $2^n$. I call that Reed's Law. And its implications are profound."

- Coase's penguin
- Social capital
- Metcalfe's law
- Sarnoff's law
- Andrew Odlyzko's "Content is Not King"
- List of adages named after people
- List of eponymous laws

- That Sneaky Exponential—Beyond Metcalfe's Law to the Power of Community Building
- Weapon of Math Destruction: A simple formula explains why the Internet is wreaking havoc on business models.
- KK-law for Group Forming Services, XVth International Symposium on Services and Local Access, Edinburgh, March 2004, presents an alternative way to model the effect of social networks.

Wikipedia, the free encyclopedia © 2001-2006 Wikipedia contributors (Disclaimer)

This article is licensed under the GNU Free Documentation License.

Last updated on Friday September 19, 2008 at 15:47:08 PDT (GMT -0700)

View this article at Wikipedia.org - Edit this article at Wikipedia.org - Donate to the Wikimedia Foundation

This article is licensed under the GNU Free Documentation License.

Last updated on Friday September 19, 2008 at 15:47:08 PDT (GMT -0700)

View this article at Wikipedia.org - Edit this article at Wikipedia.org - Donate to the Wikimedia Foundation

Copyright © 2014 Dictionary.com, LLC. All rights reserved.