3 ms·
In business, up to a limit, money has a network effect. More money, especially more revenue, lets you move faster and take more risks. Only true up to a limit,
by adw 17y ago
In business, up to a limit, money has a network effect. More money, especially more revenue, lets you move faster and take more risks. Only true up to a limit, okay, but disposable income is agility.
- encoderer 17y agoI think I'd actually say it has a "reverse network effect" (oh, christ, i hate talking like that). Seriously, though, allow me to illustrate: If the value of $1MM to you is N. And you add a second $1MM. The value is almost certainly going to be less than 2N.
- adw 17y agoWe're talking about the utility function of money. With enough money, it's definitely the case that it goes down, but I think it goes up faster than the apparent value for a bit as well. £20k is more than twice as useful as £10k is more than twice as useful as £5k. Where the crossover is, though...
- gojomo 17y agoMoney can let you take more risks, market better, do things faster and larger -- but none of those capabilities are 'network effects', any more than a 'mountain lion' is a 'wedding ring'. Geez, people, is there some sort of contagious aphasia going around? Somebody call the CDC.