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Group-forming networks, according to Reed, increase in value a rate of 2^N, where *N* is the total number of nodes on the network.
The reason why Reed suggested a formula of 2^N instead of N^2 is because the number of possible groups within a network that “supports easy group communication” is much higher than 1, so that the total number of connections in the network (the network density) is not just a function of the total number of nodes (N^2).
The Network Effects Bible
NFX
A popular belief about “rationality” is that rationality opposes all emotion—that all our sadness and all our joy are automatically anti-logical by virtue of being feelings. Yet strangely enough, I can’t find any theorem of probability theory which proves that I should appear ice-cold and expressionless.
Feeling Rational - LessWrong
lesswrong.com
For something like Uber, if you had looked at only the market size of taxis, you would have never believed they could build such a large company.
Eric-Jorgenson_The-Anthology-of-Balaji.indd
readwise.io
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