Social Media: Economics and business model

Christophe Benavent Universit Paris Ouest

An
overview
with
a chinese
Flavor

Honeycoomb
model
which
function?

Which
Usage?
(UM wave)

But also

Collaborative plateform: AirBnb, Blablacar, ..

Digital Labor plateform: Kaggle, Mechanical Turck

Soft and Data Platform: Github

Crowdsourcing PlatformQuirly,

Marketplaces PlatformEbay, le bon coin

Platform Economics

Network and standard externalities

Long tail and the miscellaneous economics

Multiside Markets: Tirole contribution

Matching Markets: dating in India

Crowdsourcingor digital labor and UGC

Reputation systems: trust trust trust=> How to manage?Influencing behaviors to favour a global response: gouvermentality

Marketing: Nudges and Policies

Network and standard externality

Size of the market is the value

Switching cost lock markets

Long tail

Mutiside markets

PlatformsUsersAdvertisers

Ad companiesAudience measurement

Content Advertising

Tirole: benefit could be maximized even the price on one side is lower than marginal cost:

The matching market problem

Dating, Job, real estate, Schooling, Kidney, .

Crowd sourcing: play and work (gratification but no pay)

Reputation
markets

An evolutive model of MSP ( ali baba case)

Gouvernementality

Influencing individual conduct to produce a populationnal feature (ie: style of driving for road security)Algorithmsearch and recommendation engine, notification and dashboard, recognition engine,..

Policies: rules and enforcement

Motivational devices:Gamification

Nudges

Business models

Advertising

Fee

Subscription

Freemium

Affiliation

Data

Advertising model

Subcription model

Freemium

Commission model

Mainly for market place

Who pay?

How to divide?

How optimized?

Virtual Goods Model

Fashionable in 2011.. a big stuff in asia, renewall through virtual reality

Winner take all?

Affiliation model

Payment and virtual currencies

Data and API

Newcomers

Competitive issue

Multihoming