  This paper investigates the impact of link formation between a pair of agents
on the resource availability of other agents (that is, externalities) in a
social cloud network, a special case of endogenous sharing economy networks.
Specifically, we study how the closeness between agents and the network size
affect externalities.
  We conjecture, and experimentally support, that for an agent to experience
positive externalities, an increase in its closeness is necessary. The
condition is not sufficient though. We, then, show that for populated ring
networks, one or more agents experience positive externalities due to an
increase in the closeness of agents. Further, the initial distance between
agents forming a link has a direct bearing on the number of beneficiaries, and
the number of beneficiaries is always less than that of non-beneficiaries.
