BU415 Chapter Notes - Chapter 4: Network Virtualization, Fax, Positive Feedback
Document Summary
Value in scarcity, the value of a good is a function of its limited availability (diamonds) Value in plenitude, the value of a network is a function of the number of physically or virtually connected nodes (ex. Friends have a fax machine, you value it more, would want it) Physical networks are nodes connected by physical links (ex. Telephone or railroad network) through railroad tracks or telephone wires. Virtual networks are when connections between network nodes are intangible/invisible (ex. itunes, skype, ebay) In a virtual network, people can share information (ex. Files of the same format) with other members of the same user network (ex. The self-reinforcing mechanism by which the strong gets stronger and the weak gets weaker. Similar to the process by which return in a microphone quickly becomes louder and louder until it reaches a deafening volume. Positive feedback simply means that the process is self-reinforcing not that it is beneficial.
