Chapter
Monetizing Goods with Advertising or Charging People
37:58 - 43:25 (05:27)
The economic theory behind monetizing goods with advertising or charging people depends on the shape of the demand curve. When the demand curve is flat and wide, advertising tends to work better, and experimentation is needed for two-sided networks or platform effects.
Clips
The value people place on Facebook varies based on age and personal preferences with some people finding other networks better.
37:58 - 39:49 (01:51)
Facebook
Summary
The value people place on Facebook varies based on age and personal preferences with some people finding other networks better.
ChapterMonetizing Goods with Advertising or Charging People
Episode#141 – Erik Brynjolfsson: Economics of AI, Social Networks, and Technology
PodcastLex Fridman Podcast
The decision of monetizing a product or service with advertising or charging people depends on the shape of the demand curve.
39:49 - 43:25 (03:35)
Demand Curve
Summary
The decision of monetizing a product or service with advertising or charging people depends on the shape of the demand curve. When the demand curve is relatively flat and wide, advertising tends to work better; if it is narrow and steep, charging people will be more efficient.