The tipping point of Netflix’s stock
https://www.economist.com/democracy-in-america/2011/10/26/information-cascades The Economist article starts with an observation of the stock prices of Netflix — it’s very volatile. 18 months before the article was written, the price went from $50 to $300 then all the way down back to $75. Not only has the price gone through a rollercoaster, even more surprising is that on […]
The Bayesian Method of Financial Forecasting
https://www.investopedia.com/articles/financial-theory/09/bayesian-methods-financial-modeling.asp The article starts of explaining the Bayesian Method and more specifically Bayes’ Theorem. From class we understand that Bayes’ Theorem is most often used to calculate posterior probability, the conditional probability of a future uncertain event that is based upon relevant evidence relating to it historically. An example the article gives about how […]
Second-Degree Discrimination on social media platforms
https://link.springer.com/content/pdf/10.1007%2Fs00199-018-1107-y.pdf In this article, the author studied second-degree discrimination through different methods of advertising on social platforms. Second-degree discrimination is when a platform offers a “two-version bundle of their services”, such as a free version and a premium version. The premium version of the platform is purchased at a price and offers network externalities that […]
Two-Sided Network Effects in the Sharing Economy
Articles: https://www.linkedin.com/pulse/uber-airbnb-challenges-two-sided-markets-roderick-huiskamp https://digital.hbs.edu/platform-digit/submission/airbnb-reinventing-hospitality-with-network-effects/ Network effects are often mentioned when talking about popular social media platforms such as Facebook, Whatsapp, etc or content platforms such as Instagram, Youtube, etc. However, with the rise of the sharing economy, we have now begun to see businesses take network effects one-step further through leveraging two-sided network effects. Before deep […]
The Dubious Power of Power Laws
A plethora of things in nature follow a normal distribution. This can be explained via the Central Limit Theorem, which states that the sampling distribution of the sample means approaches a normal distribution as the sample size increases. Following a normal distribution means that the majority of the measurements of independent quantities are centered around […]
An Analysis of Word-of-Mouth Effects on Social Networks
https://computationalsocialscience.org/wp-content/uploads/2011/10/kurahashi-saito-final.pdf This link is a research paper done on the neighbors’ effect on a consumer’s decision in regards to innovation. The paper examines two effects, informative and normative, and analyzes how diffusion flows through the networks. The informative effect is focused on the speed of diffusion is scale-free networks while the normative effect is focused […]
PayPal On Facebook Pay And The Power Of Consumer Choice
https://www.pymnts.com/exclusive-series/monday-meetup/2019/paypal-on-facebook-pay-and-the-power-of-consumer-choice/ During last week’s lecture, we’ve learned how the network effects, also called the direct-benefit effects, plays a role in our daily lives. By definition, this is when someone obtains explicit benefits from others when the mimic the actions of other people around him or her. This concept could be easily explained by an […]
Salary Negotiation
Consider the following discussion of salary negotiation strategies from the Harvard Law School: How to Negotiate Salary: 3 Winning Strategies There are a couple of takeaways from this article. One is that those that negotiate salaries in general receive greater compensation than those that do not negotiate, or are excessively accommodating or competitive in the […]
The Spread of Fake News through Facebook and Diffusion
Source: https://bigthink.com/politics-current-affairs/facebook-banned-accounts This article talks about the way that things like fake news can be spread on social media sites, like Facebook. Currently on Facebook, there are an estimated 5% of users that are considered to be fake accounts. However, this number is actually thought to be around 20%. These fake accounts are being used […]
Studying Behavioral Cascades in Nature
https://www.princeton.edu/news/2019/09/30/get-moving-mystery-animal-group-behavior Across many species separated by millions of years of genetic evolution there exist incredibly similar behaviors when these animals coexist in large groups whether it be herds, schools, or packs. When certain behaviors are expressed, particularly those in response to danger, many animals will display what is now called a ‘startle cascade’. This occurs […]
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