Ask HN: Calculating utility of a new member joining a network

5 pointsvarunjuice11y ago1 comments

Here is what I'm trying to understand.

Let's say I join a network. I gain some utility because of all existing nodes on the network.

At the same time, I add to the utility of a network by becoming a node.

Are there network characteristics which can make this utility asymmetric? e.g. are there circumstances where the marginal increase in the network's utility is greater than the utility gain for the new member?

1 comments

1 comments · 1 top-level

mgalka11y ago

Depends on the utility function. Assuming it is diminishing (2nd deriv is negative) with respect to the number of other members, the new member will always gain more utility than the network as a whole.

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