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February 16, 2022
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Economics teaches that “natural” monopolies operate in the market for certain goods and services.
Take, for example, telephone communication. A telephone service is only truly valuable if every person on the phone can be connected to every other person on the phone. For these reasons rthe market will “naturally” coalesce around a single monopoly supplier, often in the absence of government intervention.
The Internet is a good example of a person. I could – hypothetically – go and design a nifty new system to connect all the computers together, and maybe even convince a group of friends to use who’s. However, if it didn’t interact with the system we’re referring to when considering the Internet, it wouldn’t usually make much of a difference.
Of course, there are other ideas, including electricity, metro programs, road and rail transport.
I’m sure you get the general idea. I want to emphasize the (sometimes) overlooked fact that all these patterns have one thing in common: they are networks.
Cybermonopolies
We usually think of natural monopolies because all these monopolies require a physical infrastructure, but the same principles apply to cybernetworks. Of course, one is better than two or two.
For example, instant messaging would be better if everything was aboutgram packages worked together. However, this will increase competition, and therefore large distributors tend to leave their instant messaging programs open to outsiders.
However, the recently recognized interoperability agreement between Microsoft and Yahoo is generally just a strategic move to give them an edge over AOL and Google.
In the case of real-time messaging, a few players survived because monopoly profits are relatively manageable. Switching between multiple instant messaging programs is awkward, but not great. All of them are available for free use and take up little space. Thus, users will put up with the difficulties associated with multiple providers.
Peer-to-Peer
So language in a peer-to-peer communication network required a higher level of customer investment?
At the end of the day, social media is essentially a network for peer-to-peer communication. Users submit information about themselves to a web page and then link to it for Links to friends pages.
The resulting online network reproduces commonly recognized social ties and facilitates communication between parties. The end result is a beautiful, simply super-efficient extension of the usual word of mouth.
Rather than meeting up with friends and even asking, “Has anyone heard what so-and-so does?” social media users should just follow online connections that are (hopefully) good for it of a person, asking questions and finding out the latter.
Bright Future For MySpace
MySpace is, of course, each of our largest social networks, and like any other network, its usefulness increases with the number of users. It also grows as the number of facts it contains increases. (It makes no sense to look for a page of long-lost friends, nothing is said about them.)
In other words, social networks require more “investment” from users than Internet instant messaging. You need to not only make a list of friends, but also spendspend time and energy on sharing information about yourself.
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