Economic modeling of
social networking services
Framework
Economics of Information
Final Paper Presentation
Hyunwoo Park
Conclusion & Future Work
Social Network
Services
Example of bipartite graph - Disease outbreak model
Competition between services
1. Agent <=> Agent Tie
2. Agent <=> Service Tie
Static
Dynamic
Pre-defined topology
Waxman Topology
Barabasi-Albert Topology
Small World Topology
Random network
All vertexes have same level of connectivity.
Scale-free network
Incremental Growth
Preferential creation of edge
Scale-free network
Different algorithm to BA topology
Clustering characteristic
Cost
Utility
Make agents interact based on game situation.
Payoff is decided based on the type of interaction.
Relationship is reinforced.
# of friends
# of celebrities
?
How deep will the existence of your friend in the same network increase your utility?
How will utility decrease as depth increases?
You
Your friend
Your friend's friend
Some literature says "2" step is the maximum.
I could not figure out yet
which would be best describing function.
Exponential
Linear
Polynomial
It may not be important,
because only 2-depth is considered.
A Japanese blog hosting service differentiate itself by hosting lots of celebrities' blogs.
Number of celebrities should be into consideration.
Joining cost
On-going cost
Exit cost
?
What kinds of costs should users pay?
Time
Money
Effort
Website usability
Interface design
Ease of making a relationship
"Learning curve" theory could be applied here.
Virtually zero
Effect of
initial setting
As time goes by
# of initial stage members
Locality of initial user base
Wheter multiple joining allowed
Relationship decays over time
Starting with
10% of the entire
population
Starting with
1% of the entire
population
Starting with
globally distributed
population
Starting with
locally concentrated
population
Value of
Relationship
Time
Conclusion
This is how I would
      describe social networking services.
Future work
Write elegant equations
Write up paragraphs
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