What is the network effect? (Theodore Vail) – It’s the effect described in economics and business that an additional user of goods or services has on the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it. Can’t function unless there are other connections.
Can you remember what ‘feedback loop theory’? (Norbert Wiener) 21 mins into video – Provides information to an organisation about system successes and problems. If a feedback loop is positive then there are ‘success results’, but if not then there is a ‘negative feedback loop’ if there are problems. Predicting behaviour.
What is the Dunbar number? (Robin Dunbar) – This is the supposed cognitive limit to the maximum number of stable relationships one person can have. It’s said that this number is 150.
Who really benefits from a digitally networked society? Big business or individuals? Refer to ‘loop theory’ and the ‘Dunbar number’ – Big businesses benefit from a digitally networked society as it allows for them to reach a very wide audience and many different people can see something that has been uploaded onto the internet. It also partly benefits individuals because it means that they can explore the internet and social media platforms with hardly any consequences. Facebook is a good example as it allows users to interact with multiple different people and friend as many people as they want. Although the Dunbar number is present at 150 people there is no limit and people can explore however much or as little as they want. Facebook would benefit from this as the app would be growing.
How does big business benefit? What commodity do they trade in? Answer: predictive human behaviour. Write out an answer in your own words –
