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According to Metcalf Theory, the value of a network depends on the number of connections within this network. This is what is called Network Effects.

According to Metcalf Theory, the value of a network depends on the number of connections within this network. This is what is called "Network Effects". Assume that we have two networks that are competing with each other in the online dating arena: One of them has 1,000 users, and the other has 2,000 users. Determine the value of each dating service independently based on its number of connections; and the value of the network if both dating services are merged. What is the formula and solution

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