When a consumer joins a network, the value of the network to potential users rises.

Question

Quizplus · Accepted Answer

This phenomenon is described by Metcalfe's Law, which states that the value of a telecommunications network is proportional to the square of the number of connected users of the system. As more consumers join a network, the potential value and utility of the network to each user increase, making it more attractive to potential users.

When a Consumer Joins a Network, the Value of the Network