FOAF-style network

2. What professional benefits do you see by investing some time in a FOAF-style network?

Social networks allow users to connect with one another. Sites like Facebook, LinkedIn, and Twitter, can be considered FOAF-style networks. These forms of networking create many benefits in the business world. It allows many professionals to find job applicants through word-of-mouth, and personally see their qualifications. There qualification can be based on personality and professional experience. By using a FOAF-style networking in the hiring process companies can decrease ROI and recruiting cost. For example, a LinkedIn account is a form of marketing oneself through an online profile that demonstrates who you are and what you could offer an employer. In many cases these sites have more personal than professional benefits, but I believe personal connections can help land you a professional benefit. By using these networking platforms users can stay connected with various individuals on a regular bases, which increases the chance for professional benefits to occur.

 


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Prisoner’s Dilemma

1. Considering the Prisoner’s Dilemma in this chapter, provide your own insight on how sites such as eBay “work” for most participants of this popular online auction site. Do they really work? Or is there too much risk?

Shirky outlines the Prisoner’s Dilemma on page 189 of his book. He states that there are different outcomes, which depend upon two parities that lack the ability to communicate or trust each other. Basically these two parties might not cooperate with one another even if it is in their best interests to do so. This relationship is very similar to how sites like eBay operate.

Since there is no way to read other individual’s minds there are four possible outcomes to a Prisoner’s Dilemma. In terms of an eBay transaction the outcomes would be as follows:

The buyer and seller both complete the transaction as expected.

The buyer rips off the seller.

The seller rips off the buyer.

The buyer and seller both rip or take advantage of each other.  

Sites like eBay give users access to a lot of products or services that would other wise not be available to them; however, eBay transaction are hit or miss. eBay allows email communication between buyers and sellers. This lack of direct communication increases the chance of rip offs, and untruthful transactions.  If a user is buying, say a watch for example, on eBay they are running the risk that this watch might not be what they were expecting. The seller is also running the risk of the buyer not providing adequate payment. As an eBay user is it important to always read product descriptions and buy from top rated sellers. By doing so a buyer reduces receiving a defective product and the seller receives payment (and hopefully a higher star rating).

            In my opinion, eBay is a create resource. I believe that most users are looking for the same end result, satisfaction. eBay is a user friendly tool that offers its services with a few clicks of a button. There maybe some users out there that are looking to rip off people but by taking purchased products, and using PayPal or credit cards to place orders most people receive what they are looking for. Overall, I love eBay and do not consider it a risky resource.


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Information Cascade

Look deeper into the concept of a “information cascade.” Can you cite an example of where following the actions of others was a sound idea? Where doing so ended up being a poor choice?

The phenomenon, information cascade happens when people observe the actions of other individuals and then rationally make the same choice that others have made. A good example of an information cascade would the 1989, protests in Leipzig, Germany. Protestors would conduct weekly meetings, in which the number of attendees grew rapidly. After reaching over 400,000 members the protestors marched the streets of Leipzig, until the Berlin Wall collapsed (162). The Tiananmen Square Massacre in China represents bad example of an information cascade. The protests lacked a definite cause, and leadership that resulted in Hu Yaobang and an unknown number of other deaths.

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Technology Behavior

Based on the quote from this chapter, “revolution doesn’t happen when society adopts new technologies--it happens when society adopts new behaviors,” do you agree or disagree? Cite examples to support your position.

When new technologies emerge in our society we are invisible to their impact. I believe that as a whole our society desires technology and change; thus we are always looking for the newest and the best. I believe that the television, the Internet, cell phones, social networks, and other technologies are changing how we communicate as a society. Overall, it seems that our society continues to adjust to communication technology, making it harder for individuals to track exactly how technology actually impacts daily life. The reason why society doesn’t adopt new technologies is because our behaviors for that technology make the technologies’ impact happen. In the 1990s, Tim Berners-Lee discovered the Internet, which has become a major aspect of daily life. The Web is technology but society has made it modifiable, accelerate, and fit into modern society (Shirky, 158). In other words, people make technology then societal behaviors reform the technology to a better social fit. I agree with the quotation above.

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Mental Transaction Cost

2. Explain and give an example of a mental transaction cost.

When individuals debate or decide whether or not to buy a product by looking solely at the price they are performing the thought process called ‘mental transaction cost’. An example of this process would be an online company offering free shipping to your house and if you do not like the product you can return it for free. This concept allows consumers to virtual shop online with ease. It reduces the fear of ‘will I like the quality of this product?’ or ‘did I order the right size?.’ By taking shipping costs out of the equation consumers worry less about the consequences behind the purchase. Personally, I believe many individuals base their purchasing decisions on cost. Thus, this mental transaction cost places the value on a product. At times taking away consumers’ thought process can trouble companies with return sales, and more money spent on unnecessary harmful deliveries.

Free?

Why is “zero” such a hot-button word?


Zero is such a hot topic because why would one want to pay for a product or service if they can get a similar one for free? Well the main question here is, should we be thinking twice about free products?

The concept of free or no charges manipulates consumers minds changing how the might actually feel about a given product or service. The zero price tag psychologically causes a customer to forget some of the pitfalls that free product might have. Another aspect of free products is that the consumer might not take full advantage of what the product has to offer; therefore never realizing it’s true benefits. Then there is the other side of the story, does this product’s benefits out way it’s costs. Personally, I believe there is not such thing as free. Regardless of the zero price tag on an item, consumers still spend time or money presuming that ‘free’ product. Ultimately, the concept of zero ties to product sales, promotions, and discounts.