The pair coordination cost between 3 individuals, ignoring overhead, is 3x dollars, as there are three possible pairs that need to coordinate, i.e., there are three connections in a network with three nodes.
The pair coordination cost between 4 individuals, ignoring overhead, is 6x dollars. At 5 people, the pair coordination cost is 10x dollars.
At n people, the pair coordination cost is (n(n-1)/2)x dollars, which is asymptotically proportional to n²x as n grows.[a]
When coordination costs are high, as with software development, it's not surprising that small teams outperform large teams.
Large software development teams generally cannot accomplish much -- unless they break into smaller, highly autonomous teams with well-separated responsibilities.
This applies to other high-coordination-cost endeavors, such as building a successful company from scratch.
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[a] This is Metcalfe's law, but for a network's pair coordination cost instead of value: https://en.wikipedia.org/wiki/Metcalfe%27s_law