FOAF-style network

Just when you think social networks could not get more innovative, think again. When I was first exposed to this idea, "friend of a friend," I thought about LinkedIn. I know they are different, but I feel there is a minimal amount of social "business" networks. With "friend of a friend" may change the whole game of getting employed. For example, the whole "interview process" begins with getting recognized. Being recognized, in my opinion is the hardest part in getting a job. If your resume is not impressive, and your cover letter is just average, consider yourself unemployed. However, you take this same instance, and your references are all presidents of major companies, you may have a shot. Your best references in the near future may come from a "FOAF" network. People build credibility in numerous ways. With a FOAF style network, it is just another way to get recognized. In this economy, the unemployed can use all the help they can get. Also, this may benefit businesses all around the world. So much money is put into research and background checks to make sure the individual they are about to hire is the right choice. With this style of network a company may better understand the type of person you are through the people that you know. If it's a social network I am going to assume it's free, which takes much of the economic pressure off of research departments.

Prisoner's Dilemma

First, we have to define the term before I reflect on it. Prisoner's dilemma deals with the "seller to consumer" relationship. First, there is a transaction where both the seller and customer are "ethical" in which they both respect each others' part in the transaction. Second, the seller takes advantage of the customer. Third, it's the exact opposite where the buyer takes advantage of the seller. Fourth, they both take advantage of the situation. When discussing auction sites like "eBay," this "prisoner dilemma" is very present through every transaction. Close to the beginning of the semester I shared a story dealing with eBay where the second part of a prisoner's dilemma took place. I thought I would share it again because it directly relates to the material. I am a huge basketball fan, especially a Knicks fan. Over the years it has been very hard to support them. What do you do when they are consecutively horrible? You look back on the glory years to make yourself feel better. So, I wanted to purchase an Allan Houston jersey to take myself down memory lane. I found the perfect size, and perfect jersey. The title clearly said, Medium, not specifying if it was an adult size or children size. When not specified, I think we all assume it is adult. As a frequent online buyer, if it is a kid's size, people go out of the way to specify this particular characteristic. I receive the jersey in the mail about three weeks later, and the jersey is as big as my right leg.   

There are two possible risks I see as being major in the online auction process. First, you go through the same experience I did, and not receive your money's worth. Second, identity theft when providing credit card information. However, "PayPal" is a great way to protect your information which gets rid of the second risk. I do believe they work because I have many friends who have had great experiences with eBay. I believe we need to be careful and conscious of the risks before getting involved so we avoid mistakes like the one I made.

Information Cascade

I believe the best way to describe an information cascade is the followers and trends we see in today's society. People go on TV and look at the clothes people are wearing, and the music people listen to. When it is repeated, and drilled into people's minds everyday, you see people exactly replicate these actions without even thinking twice about it. Your own instincts become the majority's instincts, and this is where we see a loss of identity when everyone is following each other, rather than follow their self. It almost seems logical for the insecure. You have nothing to worry about if you wear and listen to the same music everyone else is. I browsed over some other reactions to this blog post. I saw someone mention the JMU riot. Now, we have been doing this event for years on end. We look at the paper and you have 12 convicted felons that were non-JMU students, and maybe one from JMU. For some reason, one person decided it would be a good idea to throw a beer can at an officer. It seemed like people's instincts were following the majority, and loss all clear sense of thought. Within minutes there were thousands of beer cans being thrown into the air. Now, I am not saying JMU students did not participate in the riot because they definitely did. However, I believe they got caught in an information cascade that was brought from the outside where they thought these type of actions were okay. Without an outside influence, I believe there would be no problems today.

“revolution doesn’t happen when society adopts new technologies--it happens when society adopts new behaviors”

I could not agree more with this quote. Today, new technology is part of our daily lives. It has become such a routine in our culture that it has lost its popularity over the years. People are not looking for the craziest inventions out there, they are looking for change. I would just like to cite back to our presentation last night. At the end, you asked the group if it is easy for a company to utilize social media through viral marketing. The answer is simply "no." Everyone is exposed to technology and social media everyday. What grabs attention of the public these days is something new. In this particular quote, "new behaviors" is not new technologies. It is utilizing the technology we have, and reaching the public on a level where they can relate to the company. Something that shows you would be just as creative without the technology at hand. I think that best describes this quote.

Mental Transaction Cost

A "mental transaction cost" is literally the thought process in deciding to buy something based solely on the price of that particular product. Everyone at least thinks for a split second on whether to buy something. Well, when referring back to the last post, when someone offers you something free, where can you point out a time when that individual's mind is contemplating his/her cost options? The answer is never! This is why "zero" has such a major influence, especially on the hard working Americans. It completely gets rid of this "mental transaction cost" and by instincts, 100% of the time you will take that offer. So, in a nutshell, this is the best description I could come up with, and I believe there is a high correlation between how in depth the mental transaction cost will be depending on how high or low the price is.

"Zero," The Hot Topic

Zero is such a hot topic because it frees people's minds of rational thought. I believe this ties right into "discounts," and "sales" where people think they are actually saving money. Nothing is free in this life. You have to work hard in order to achieve possessions. Especially in America, which is known as the hardest working country in the world, when something is presented as "free" it almost seems like a no-brainer without even thinking of the quality of the product. Also, when something is presented as free, people do not even think of the possibility that the company is trying to tie you in to buy more of their products. Don't get me wrong, when I am in the heat of the moment, I would do anything for a free shirt, or free product in general. I know exactly the motives of a company when I see something is free, or on sale, and yet, I still contribute to that particular business. I don't know why but it has to be an individual's largest weakness, and companies around the world are continuing to capitalize on this very notion.