Last time I have been writing about the size of social networks, hence the quantitative characteristics. Today I want to continue with a brief article about a related subject: the value of networks.
Since the advent of telecommunication and broadcast media, scholars from around the world studied the economies of mediated networks. To identify the value of a certain network was an important issue and part of monetization strategies. Network laws can be used as guidelines to determine the value of certain networks. Although an important aspect has always been the direct economic value of the network, other values such as diffusion, dynamic, or potency of the network are becoming increasingly important recently as they may lead to possible indirect monetization strategies. Although most of these laws have been invented with the concept of electronic networks in mind, it is also absolutely necessary to understand them for the study of non-mediated social networks.
An early law of the economics of computer-mediated networks is called Sarnoff’s law. This law was drafted in the early twentieth century by David Sarnoff, a pioneer of commercial US-American radio and television. Continue reading