Michael Elling
Sep 3, 2018 · 1 min read

We have to rethink the notion of private property rights, given the potential for abuse, marginal differences, and, most importantly, the very concept of network effects.

Applying network theory to property rights we find that an idea has no value without a network, but a network has no value without an idea (or more users).

So most people who profit from their ideas or property, don’t realize that the majority of the riches came from the network. In order to sustain the network, value captured at the core should be better aligned with costs borne at the edge. That way the network effect will be even larger. Relative costs will decline even as overall costs will grow in linear, albeit declining slope fashion, while value will continue to grow geometrically.

Essentially, to get more, one has to give more as they grow bigger. But in the process the idea or property will be more sustainable. That’s how living organisms work.