Networks Effect helped Facebook Win
As we continually look into how powerful the Networks effects is to a company or when promoting a product, we look at a quintessential example of a company that has thrived as a result of these effects. Facebook was first opened in a college dorm in 2004 and was created as a website specifically for Harvard […]
Fake New and Information Cascades
Source: https://thepavlovictoday.com/afterimage-review/analysis-senate-intelligence-hearing-on-fake-news-free-speech-and-russia/ and https://www.theguardian.com/commentisfree/2017/nov/10/fake-news-social-media-current-affairs-approval Being one of the biggest political upsets in modern history, the election of Donald J. Trump still has many political commentators and analyst are trying to understand how such an upset could have occurred in an era with a supercomputer and hyper-precise data collection. Many believe that the massive influx of […]
How Important are Bitcoin’s Network Effects?
https://www.aier.org/blog/how-important-are-bitcoin%E2%80%99s-network-effects In this article by Max Gulker, he explains how network effects play a role in the success and value of Bitcoin. Currently, there are two main forms of cryptocurrency: Bitcoin and Ethereum. Due to network effects, one form may outgrow the other, as one company grows in users, it may become more valuable. Additionally, […]
The imitator vs. the imitated
https://www.psychologytoday.com/blog/consumed/201204/copy This interesting article talks about the other side of copying behavior: the perspective of the imitated. In class, it has been discussed many times about the benefits of copying others (direct-based and information-based). However, this article takes on another spin on the behavior of copying others, with regards to peoples’s desire for uniqueness or […]
How Misinformation Spreads on WeChat
https://www.cjr.org/tow_center/wechat-misinformation-china.php This article explores the issue of spreading misinformation on the popular mobile messaging application, WeChat used largely in China and consequently by Chinese immigrants in the US. Based on the biased headlines broadcasted to this population during the US presidential election, there was an investigation on how WeChat operates through its advertisements. This investigation […]
How Platforms Turned Business on its Head
https://www.managementtoday.co.uk/platforms-turned-business-its-head/future-business/article/1448212 This article centered on a presentation given by Boston University’s Information Economics Professor Marshall Van Alstyne, who talked about the platform revolution. He argued that platform ecosystems, which are businesses that build online networks that allow them to grow and succeed beyond the confinement of the corporation have inverted the very nature of the […]
Google and Information Cascade Effects
https://www.nytimes.com/2017/08/30/opinion/google-influence-think-tanks.html The article by Jonathan Taplin addresses the issues surrounding Google and the influence the company has over think tanks. As major tech companies come to dominate more of the U.S. economy and their prominence becomes more scrutinized, many have suffered backlash in regards to their monopolistic tendencies and ability to impact regulations over their […]
Negatives of Network Effects in e-Commerce
Since the rise of the dot-com era, there has been a proliferation of multi million dollar corporations, to fill the originally empty sector of e-commerce. Think of companies like e-Bay, Craigslist, or Ali-baba. These companies have held market share since their inception, some more than 15 years ago. Despite the size of the markets currently, […]
How a Bubble Stayed Under the Radar
This article, from the New York Times, covers the collapse of the housing market in 2008, and how information cascades helped cause that collapse. To briefly summarize, the financial crisis around 2008 was in part caused by the collapse of the housing bubble, to which many did not see coming. The lack of understanding the […]
How Instagram Achieved Insta-growth with Network Effects
Textbook Network Effects: How Instagram Achieved Instagrowth This article talks about how Network effects led to its rapid growth – the social media platform grew its valuation from $0 to $1 billion in only two years. The reason that Instagram grew so rapidly is precisely because of Network Effects; the platform is more valuable because […]
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