[wsfii-discuss] Network Valuation

Tue Apr 7 13:23:58 UTC 2009

>From /.[http://rss.slashdot.org/~r/Slashdot/slashdot/~3/JU4poe9oOCI/article.pl]

"A new fundamental law of economics has been formulated by Rod
Beckstrom, former Director of the National Cyber Security Center. In
Words: The value of a network equals the net value added to each user's
transactions conducted through that network, valued from the
perspective of each user, and summed for all. It answers the
decades-old question of 'how valuable is a network.' It is granular and
transactions-based, and can be used to value any network: social,
electronic, support groups, and even the Internet as a whole. This new
model or law values the network by looking from the edge of the network
at all of the transactions conducted and the value added to each. One
way to contemplate the value the network adds to each transaction is to
imagine the network being shut off and what the additional
transactions' costs or loss would be. Beckstrom's Law replaces
Metcalfe's law, Reed's law, and other concepts which proposed that the
value of a network was based purely on the size of the network (and in
the case of Metcalfe's law, one other variable)."

 Vickram
http://communicall.wordpress.com
http://vvcrishna.wordpress.com

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