Uber And Friends: Old Math Of The New Economy
Paul Higgins: Interesting Analysis:
"the most important shared trait is that they exploit what economists call the web’s externalities, also called Metcalfe’s Law, which link the returns and utility of a service to its number of users.
The more people use Windows for example, the more software is developed for it, which will lead to even more people using it.
Google constantly improves its search algorithms to locate information every time it is used by millions of viewers, which attracts more users who are all “working” to improve Google’s worth (latest figure, $375 billion).
The problem is that Metcalfe’s Law often leads to de facto monopolies……”
Full Story: WorldCrunch