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Writer's pictureDr Colin Lee

New Metrics Utilizing Universal Laws: Power Law

The power law is a polynomial relationship that demonstrates scale invariance between variables. Its basic forms are:


Power Function :  y= x a (where a is a rational number)

Exponential Function : y=ax (where a>0 and a≠1 


Power Law Distribution

A power law distribution is a probability distribution that assumes a variable x follows a power law with parameter α, and its probability density function is expressed as:

f(x)=cxa−1(x→∞)


Inverse Exponential Relationship

  • Number of Clients

  • The Value of Interactions with Products or Services

Applications in Social Networks

Power law distribution has extensive and profound applications in social networks, as illustrated by the following examples:


  1. Node Connectivity: This shows the distribution of relationships among users in social networks. Most users have a few connections, while a few users, often celebrities or key influencers, have many connections. This uneven connectivity pattern aligns with the power law distribution, indicating that a minority holds the majority of social resources.

  2. Information Dissemination: In social networks, the power law distribution is evident in how information spreads. Most information is shared by a few users, while a small number of messages, such as viral content, are widely shared. This dissemination pattern affects the visibility and influence of information, allowing certain content to quickly become popular.

  3. User Activity: User activity is another crucial aspect. In social networks, user participation often follows a power law distribution. Most users engage infrequently, whereas a few are highly active, contributing a large amount of content and interaction. This activity disparity impacts community dynamics and development.

  4. Social Network Graphs: The structure of social networks often follows power law characteristics. In the network graph formed by user connections, the degree distribution of nodes exhibits power law regularity, highlighting the presence of central nodes crucial for information flow and social interactions.

  5. Community Formation: This also reflects power law distribution features. In social networks, communities or circles are usually dominated by a few core users whose influence and connectivity are significantly higher than others. Such structures strongly influence the dynamics and growth of communities.


Power Law Applications

  1. Self-Organized Critical Models:

    • Systems build interdependencies, producing power law distributions until a critical state is reached.

    • Real systems like earthquakes, networks, finance, sand piles, and fires exhibit self-organized criticality.

    The forest fire model is a type of self-organized critical model. Trees grow on a 2D grid and might be struck by lightning. At low tree densities, lightning-induced fires remain small. As density increases, a strike can lead to a large blaze. Real forest fire systems are open systems with energy exchanges: tree growth as energy input and fire as energy output. These systems evolve to a critical state, potentially leading to major events.

  2. Digital Entrepreneurship:

    • Professionals increase income by changing jobs or undertaking high-risk ventures; continuous learning can mitigate risks, leading to substantial earnings.

    Entrepreneurs often choose high-risk opportunities. Capturing a "unicorn" (a company valued over $1 billion) can outweigh multiple failed projects and yield significant profits. Assessing one's risk tolerance is crucial before starting a venture.

  3. Machine Learning Curves:

    • Applying power law distribution to algorithms and data analysis.

    Power law distribution is valuable in machine learning, helping understand feature impacts, optimize datasets, and improve model performance. It reveals the critical role of few features in predictions and aids in designing generative models and network analyses. This makes power law distribution a vital tool in machine learning research.

  4. New Investment Analysis:

    • Using power law models for accurate market predictions and risk management.


    Wealth distribution over time resembles a power law, especially in digital technology sectors. This helps in understanding and predicting complex system behaviors across various fields, including physics, biology, psychology, economics, meteorology, and criminology.


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