Overview
The economics of social networks examines how social connections and interactions create value in the digital economy. It highlights the importance of network effects, where the value of a service increases as more users join, and the role of social capital in providing economic opportunities. Under...
Key Terms
Example: A social media platform becomes more useful as more friends join.
Example: Having connections in a professional network can lead to job opportunities.
Example: Social networks monetize through ads and premium subscriptions.
Example: Users expect their data to be secure on social media platforms.
Example: Brands collaborate with social media influencers to reach wider audiences.
Example: Likes, shares, and comments on posts reflect user engagement.