Friday, September 10, 2010

Increasing Return

The concept of increasing returns is when you add a variable to something you get a higher return. As opposed to the law of diminishing returns when add a new variable and you get a decreasing return for every additional variable that is added to the equation.

 

What increasing returns means in the IT world is that the more you add to your current system the more you should be able to get out of that system whether it be getting information to more people or more people giving info themselves.  If you increase the size of a network then the more use and information you should be able to get out of the network.

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