The Law of Increasing Returns - Make virtuous circles: Value explodes with membership, and the value explosion sucks in more members, compounding the result. An old saying puts it more succinctly: Them that's got shall get. The Law of Inverse Pricing - Anticipate the cheap: Through most of the industrial age, consumers experienced slight improvements in quality for slight increases in price.
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But the arrival of the microprocessor flipped the price equation. In the information age, consumers quickly came to count on drastically superior quality for less price over time.
Network effect - Wikipedia
The price and quality curves diverge so dramatically that it sometimes seems as if the better something is, the cheaper it will cost. The Law of Generosity - Follow the free: Now, giving away the store for free is an applauded, level-headed strategy that banks on the network's new rules. Because compounding network knowledge inverts prices, the marginal cost of an additional copy intangible or tangible is near zero.
Because value appreciates in proportion to abundance, a flood of copies increases the value of all the copies.
New Rules for the New Economy
Because the more value the copies accrue, the more desirable they become, the spread of the product becomes self-fulfilling. Once the product's worth and indispensability is established, the company sells auxiliary services or upgrades, enabling it to continue its generosity and maintaining this marvelous circle. The Law of the Allegiance - Feed the web first: The distinguishing characteristic of networks is that they have no clear center and no clear outer boundaries.
The vital distinction between the self us and the nonself them - once exemplified by the allegiance of the industrial-era organization man - becomes less meaningful in a Network Economy. The only "inside" now is whether you are on the network or off.
The Law of Devolution - Let go at the top: The biological nature of this era means that the sudden disintegration of established domains will be as certain as the sudden appearance of the new. In the Network Economy, the ability to relinquish a product or occupation or industry at its peak will be priceless. Change, even in its toxic form, is rapid difference.
Churn, on the other hand, is more like the Hindu god Shiva, a creative force of destruction and genesis. Churn topples the incumbent and creates a platform ideal for more innovation and birth. The Programme also works to boost population coverage of high-speed broadband, reduce the capital intensity required for the rollout of 5G, and seek new ways of unlocking value from mobile networks.
Through collaboration on sharing of infrastructure, improvements to radio networks, and finding alternative transmission systems, capital intensity has already been reduced by four per cent. Through the release of Universal Profile 2.
- Principles of Network Economics!
- 5G forces industry to rethink mobile network economics.;
- Kelly's 12 Principles of the Network Economy: Summary and Forum.
- Definition: Twelve Principles of the Network Economy Kelly!