Lecture 12

Question 1

Online social network meaning

Answer 1

Group of people, shared social interaction, common ties, sharing an area for period of time

Question 2

Measuring popularity of apps

Answer 2

-Intensity of usage
-Fastest growing
-Most accounts

Question 3

Types of social networks

Answer 3

• General communities [Fb, reddit] - organized into general topics. Based on ads
• Practice networks [Github] - focused groups of shared practice. Non-profit or For-profit, based on ads and donations.
• Interest-based networks [Strava, Goodreads] - focus on specific interest subject. Based on ads.
• Affinity communities [Anonymous alcoholics] - discusions between people with the same affinity (self or group identification). Based on ads and sales
• Sponsored communities [Apple community, athenastudies]- created by government, companies to pursue organizational goals

Question 4

Social network features

Answer 4

1. User connection (Add friends)
2. User interaction (Messaging)
3. Content consumption (Reels, posts)
4. Entertainment (Games)
5. Utility (Storage)
6. Recommender systems (Algorithm recommendations)

Question 5

Benefits of auctions

Answer 5

1. Liquidity (able to sell globally)
2. Price discovery (estimate prices for goods)
3. Price transparency (ask and bid prices are publicly available)
4. Market efficiency (leads to consumer welfare equilibrium)
5. Lower transaction costs
6. Consumer agreggation (many potential buyers in one place)
7. Network effects (more buyers <> more sellers)

Question 6

Risks and costs of auctions

Answer 6

1. Delayed consumption costs (takes time to end auction)
2. Monitoring costs (Requires time to check bid status)
3. Equipment costs (a way to access auction (pc))
4. Trust risks (Risk of fraud)
5. Fulfillment costs (buyer pays shipping, etc.)
6. Merchant risks & costs (Nonpayment, transaction fees, other fees)

Question 7

Fraud prevention and trust building in auctions

Answer 7

1. Rating and review systems
2. Money back guarantee
3. eBay vault
4. Quality authentication
5. Proxy bidding
6. Investigation units (review complaints)

Question 8

Vertical vs Horizontal market

Answer 8

Vertical - Focus on specific industry or sector [Healthcare, automotive]
Horizontal - Serves multiple industries [IT, Marketing]

Question 9

Trends in supply chain management

Answer 9

1. Supply chain simplification - Form strategic long-term partnerships
2. Just-in-time - minimize inventory
3. Lean production - Maximize value, minimize waste, continuously improve