(Read the text in the notes panel at the bottom for narration). A problem with the Long Tail. (Although an amazing number of things are powerlaws, a lot of things arenâ€™t. How can you tell the difference?). A powerlaw. Shown another way. WTF?. The Missing Market. Source: Morris Rosenthal.
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(Although an amazing number of things are powerlaws, a lot of things aren’t. How can you tell the difference?)
Powerlaws: created by “preferential attachment” in scale-free networks.
Assuming it all comes down to network effects, how can you predict whether the “natural shape” (free of bottlenecks and other scarcity distortions) is a powerlaw or a lognormal distribution?