Laws Associated With the Internet

Law of Diminishing Returns: As transaction costs in the open market approach zero, so does the size of the firm.   Law of Disruption: Social, political, and economic systems change incrementally, but technology changes exponentially.   Metcalfe's Law: 1) The number of possible cross-connections in a network grow as the square of the number of computers in the network increases. 2) The community value of a network grows as the square of the number of its users increase.   Moore's Law: In 1965 Gordon Moore observed, "Since the invention of the integrated circuit in 1958, the number of transistors (micro-components) that can be placed inexpensively on an integrated circuit (micro-chip) has increased exponentially, doubling approximately every two years."