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Tuesday, January 11, 2011

Will Web 2.0 kill "Homo-Economicus"...

The following is a very quickly written, poorly formulated post that hopefully contains a few nuggets of insight that I can develop later...

I would like to point to a couple of recent posts shared by Brad Delong.  These posts on Google, Facebook, and the future of certain aspects of Web 2.0, have a major theme in common: they focus on the utility of social networks in optimizing not just search results but an individual's entire Internet experience.  Facebook, it seems, believes that this idea has the potential to revolutionize, not only the internet, but non-internet industries as well...

Perhaps I am wrong, but these companies (i.e., Google, Facebook, and other Web 2.0 companies) seem to be making a huge amount of money by developing technologies based around a theory of human behavior that is fundamentally at odds with neoclassical "homo-economicus" economic theory.  Web 2.0 technologies are based around the idea that individuals care about what other people care about, that individuals exist within a social structure, and that this social structure influences individuals' preferences and thus their decision making.  These technologies are facilitating a type of decentralized social/collective decision making...

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