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#networkeffects — Public Fediverse posts

Live and recent posts from across the Fediverse tagged #networkeffects, aggregated by home.social.

  1. I pushed a post “Mastodon kinda hates AI” that is basically what it says on the tin nathanherald.com/posts/mastodo

    I saw this post by 1Password 1password.social/@1password/11 and the replies were pretty overwhelmingly negative on Masto, but not anywhere else.

    Do you see the same thing? Is it good/bad/neutral that Masto overall has biases?

    #mastodon #networkeffects #socialnetworks

  2. @urlyman @davew @pfefferle

    You're right! Ideal is too strong for the case, as we'd better chose something else. Maybe viable/possible would fit better. However, #WordPress 43% adds #networkeffects to #opensourceinnovation. Otherwise, how would #Brazilianmuseums, which are among the most defunded institutions on the planet, have the muscle to be part of this conversation? The opportunity that the #pluginecosystem opens up for #sustainable #freesoftware development was key to bringing us here.

  3. This diagram, taken from the U.S. v. Google judgment, illustrates a fundamental dynamic of digital market power. This self-reinforcing loop is the core issue with Big Tech platforms: scale isn’t just an advantage — it shuts the door on competition. #DataAggregation #BigTech #NetworkEffects

  4. This diagram, taken directly from the U.S. v. Google judgment, illustrates a fundamental dynamic of digital market power:

    Data Aggregation → Market Dominance

    This self-reinforcing loop is the core issue with Big Tech platforms: scale isn’t just an advantage — it becomes a moat. And without regulatory intervention, it shuts the door on competition.

    #Google #Antitrust #PlatformPower #DataAggregation #BigTech #DigitalMonopoly #DataEconomy #NetworkEffects #Regulation

  5. This diagram, taken directly from the U.S. v. Google judgment, illustrates a fundamental dynamic of digital market power:

    Data Aggregation → Market Dominance

    This self-reinforcing loop is the core issue with Big Tech platforms: scale isn’t just an advantage — it becomes a moat. And without regulatory intervention, it shuts the door on competition.

    #Google #Antitrust #PlatformPower #DataAggregation #BigTech #DigitalMonopoly #DataEconomy #NetworkEffects #Regulation

  6. Longform by Liz Pelly at Harper's Magazine on SPOTIFY'S USE OF FAKE MUSICIANS to reduce royalty payouts to real artists. This is a long and indepth article the Spotify user and musician community should read in full.

    Images of the intro in toot, full article 👇

    harpers.org/archive/2025/01/th

    #Music #MusicBusiness #Spotify #GhostArtists #Fraud #News #Economics #NetworkEffects #enshitification #Capitalism #ParasiticCapitalism #Longform #HarpersMagazine #LizPelly

  7. Longform by Liz Pelly at Harper's Magazine on SPOTIFY'S USE OF FAKE MUSICIANS to reduce royalty payouts to real artists. This is a long and indepth article the Spotify user and musician community should read in full.

    Images of the intro in toot, full article 👇

    harpers.org/archive/2025/01/th

    #Music #MusicBusiness #Spotify #GhostArtists #Fraud #News #Economics #NetworkEffects #enshitification #Capitalism #ParasiticCapitalism #Longform #HarpersMagazine #LizPelly

  8. Longform by Liz Pelly at Harper's Magazine on SPOTIFY'S USE OF FAKE MUSICIANS to reduce royalty payouts to real artists. This is a long and indepth article the Spotify user and musician community should read in full.

    Images of the intro in toot, full article 👇

    harpers.org/archive/2025/01/th

    #Music #MusicBusiness #Spotify #GhostArtists #Fraud #News #Economics #NetworkEffects #enshitification #Capitalism #ParasiticCapitalism #Longform #HarpersMagazine #LizPelly

  9. Longform by Liz Pelly at Harper's Magazine on SPOTIFY'S USE OF FAKE MUSICIANS to reduce royalty payouts to real artists. This is a long and indepth article the Spotify user and musician community should read in full.

    Images of the intro in toot, full article 👇

    harpers.org/archive/2025/01/th

    #Music #MusicBusiness #Spotify #GhostArtists #Fraud #News #Economics #NetworkEffects #enshitification #Capitalism #ParasiticCapitalism #Longform #HarpersMagazine #LizPelly

  10. Longform by Liz Pelly at Harper's Magazine on SPOTIFY'S USE OF FAKE MUSICIANS to reduce royalty payouts to real artists. This is a long and indepth article the Spotify user and musician community should read in full.

    Images of the intro in toot, full article 👇

    harpers.org/archive/2025/01/th

    #Music #MusicBusiness #Spotify #GhostArtists #Fraud #News #Economics #NetworkEffects #enshitification #Capitalism #ParasiticCapitalism #Longform #HarpersMagazine #LizPelly

  11. CW: Long thread/9

    For most of the history of consumer tech and digital networks, fire was the norm. New platforms - PC companies, operating systems, online services - would spring up and grow with incredible speed, only to collapse, seemingly without warning.

    To get to the bottom of this phenomenon, you need to understand two concepts: #NetworkEffects and #SwitchingCosts.

    9/

  12. #BigTech #Capitalism #NetworKEffects #SwitchingCosts #Economics: "While it’s possible in theory for competition to work well even when network effects and switching costs exist, it’s probably best to assume that they are gumming up the works. Paul Klemperer, one of the pioneers of switching-cost models, has argued that antitrust authorities should try to ensure compatibility between rival platforms, reducing switching costs and pushing against the ability of any one company to monopolise a network.

    That means maximising interoperability: the ability to send posts to your Facebook friends, and read their posts, even if you’ve decided to leave Facebook and use a different social network; the ability to take your eBooks and audiobooks out of Amazon’s ecosystem (you paid for them, after all); the ability to put any kind of ink in your printer, any kind of razor blade on your handle and any kind of bread in your toaster.

    Interoperability cannot be guaranteed by law. There are too many hard cases, too many grey areas, too many legitimate technical obstacles. But regulators can operate with a presumption in favour of interoperability, as they do for switching phone providers or making transfers between banks."

    ft.com/content/acaf3fb1-d971-4

  13. "… #antitrust authorities should try to ensure #compatibility between rival platforms, reducing #SwitchingCosts and pushing against the ability of any one company to monopolise a network. …regulators can operate with a presumption in favour of #interoperability, as they do for switching phone providers or making transfers between banks."
    ft.com/content/acaf3fb1-d971-4
    #enshittification #NetworkEffects

  14. CW: Long thread/4

    FB experienced explosive growth, thanks to two factors: #NetworkEffects (every new user was a draw for other users who wanted to converse with them), and #SwitchingCosts (it was practically impossible to convince all the people you wanted to hear from to leave FB, much less agree on what platform to go to next). In other words, every new user who joined FB both attracted more users, and made it harder for those users to leave.

    4/

  15. CW: Long thread/2

    When a company is neither disciplined by #competition nor by #regulation, enshittification inevitably ensues. If a user or business customer can't jump ship - because of #LockIn, high #SwitchingCosts or #NetworkEffects - then companies are powerfully tempted to mistreat them - not out of sadism, but instead to harvest their surplus and goose the company's profits.

    2/

  16. CW: Long thread/9

    This is where #NetworkEffects and #SwitchingCosts come into play. A service has "network effects" if it gets more valuable as users join it. You joined Twitter to talk to the people who were already using it, and then other people joined so they could talk to you.

    9/

  17. @boud All but certainly a markup failure, as what's printed is "n2" rather than the more conventional "2n" when referencing multiplication.

    Then there's the issue that Metcalfe's law overstates the value of network size. Odlyzko & Tilly suggest n * log(n) as a better approximation.

    dtc.umn.edu/~odlyzko/doc/metca

    My own view is that value 1) increases at a decreasing rate as nodes grow (Odlyzko-Tilly) and 2) that there's a constant cost function per node, 'k':

    V = n * (log(n) - k*n

    This also gives us an upper bound on value-increasing network scale: where k >= log(n), the network can no longer grow effectively.

    Corollaries:

    • By reducing k, viable network size can be increased. This is effectively the same as improving network hygiene such that cost factors are reduced.
    • Increasing k will reduce the total viable size of a network.
    • A periodically variable k (whether regular or irregular) will result in a network with a variable maximum viable size.

    But the key is If you want to make large networks less viable, increase their constant cost function.

    Ping @pluralistic

    @rysiek @eff

    #MetcalfesLaw #NetworkValue #NetworkEffects #AndrewOdlyzko #OdlyzkoTilly #HygieneFactors #NetworkCostFunction #Scale