Week Twelve

1. Considering the Prisoner’s Dilemma in this chapter, provide your own insight on how sites such as eBay “work” for most participants of this popular online auction site. Do they really work? Or is there too much risk?

When you compare eBay and the prisoner's dilemma there are four factors to consider. One, when you and the person you are buying from cooperate, you send them the money and they send you the item that you bid on. Two, you send the money to the person, but they do not send you the item. Three, you do not send the money, but the person sends you the item. Four, neither of you send anything so nothing positive or negative happens. For this they still have the item you wanted and you still have your money. Even with these guidelines most people would take further action if they did not receive the final item. There is a rating scale on eBay where you can post any comments about the person and you can rate them. If there are negative comments then this makes the sender look bad and prohibit further sales. On the other hand the person who is sending you the item now has all of your private information so if they did not receive your money for some reason they could potentially find you. Websites like eBay work because the benefits outweigh the negative aspects. 

2. What professional benefits do you see by investing some time in a FOAF-style network?

The benefit to FOAF-style network is the social connections or social networking. A friend of a friend can you help you find a job in today's society. Also, having friends on Facebook or Linkedin can help you connect with people in certain companies that you can benefit from. If your work information is displayed on your Facebook profile then anyone can see the information and can potentially refer you to a company. This is useful because creating a profile is easy and allows for connection to be made. These profiles also allow you to see mutual friends, which can be a benefit to you in a larger setting because now you can approach someone and talk to them about mutual people. In the book Shirky talks about playing "dodgeball" a social networking device, which is how he met Andy. This device allowed Shirky to know that they were in the same place at the same time. These networking tools are crucial in today's society where everything is becoming digital. Without having a profile you are limiting yourself to opportunities. 

Week Eleven

1. Based on the quote from this chapter, ““revolution doesn’t happen when society adopts new technologies--it happens when society adopts new behaviors,” do you agree or disagree? Cite examples to support your position.


New technologies occur in society because people want them and create them. Our society wants change and always strives to be the best at everything especially in the technology department. However, when new technology first appears it takes people awhile to adjust and adapt to the new improvements. In the book Shirky mentions emails in chapter six. When email was first invented no one thought the it would actually replace the postal system. Not only has email replaced the mail, but now people use the phone less as well. There is no need to pick up the phone and call someone when you can instantly send them and email. Email is inexpensive and has instant results that is why people are constantly using email. Yes I do believe with the quote mentioned in the question because when society decided to adopt new behaviors such as email, society grows and adapts to the new behavior. Now email is not only a noun, but it has transpired into a verb by saying that I am emailing someone. Email can be accessed just about anywhere from the computer to a cell phone. 

2. Look deeper into the concept of a “information cascade.” Can you cite an example of where following the actions of others was a sound idea? Where doing so ended up being a poor choice?

Information cascade is when people watch the actions of others and then make the choice to follow their actions. A good example of an information cascade is described in chapter seven by Shirky. Post World War Two in 1989 when small protests broke out in Leipzig, Germany against the German Democratic Republic. The protest size started to grow larger and when the government went to address the problem there were too many people and issues for it to be easily fixed. Later in the year over 400,000 people marched in the streets in Leipzig when the Berlin Wall was torn down. A poor example of an information cascade could be if union workers go on strike from working due to wanting a higher salary or different benefits.

Week Ten

From the audio book chapter on Free:
1. Why is “zero” such a hot-button word?

Zero is a hot button word because when people hear the word zero they automatically hear the word free thus jump to the idea of taking the item. Today's society is driven by money. People want to be rich and successful thus they need money. When you hear that something is free people are shocked and do not hesitate to take the free item. Since everything today has a price tag people are surprised to see that something is free. When you do find an item that is free people splurge and take as many items as possible because you do not have to pay. Free or zero cost items allow people to indulge because you do not have to think logically that the price might affect you. You do not have to open your wallet, thus the free item does not affect your bank account.

2. Explain and give an example of a mental transaction cost.

Mental transaction cost is when you decide whether or not to purchase a product based on the price tag of the product. Is this product worth the money? Do I actually need this product? These are common questions you might ask yourself when you are trying to decide if you should purchase the product. This is why a zero cost of an item is so important. An example of a mental transaction cost is when you are deciding whether or not you should buy a new pair of jeans. You might look for a coupon for the store first to save you money. When you go to the store the average price of jeans might be about $50, but the jeans you want are $80. You might not try on the jeans you want or even look at them because of the price.