Over the years
I have examined anti-trust issues in telecom. I have been thinking about social media and how that may fit. Let me walk through some issues.
1. Classic Structure
This is the classic structure of seller and buyer and then one applies Sherman and Clayton. Simple. Now how can we move social media to this paradigm? Wait! Who else is in this model?
It is a collection of marketing entities to assist targeting. These may be advertisers etc but they know the customer only in aggregate.
2. Econ 101
Classical economics states that there exists a supply and demand curve and equilibrium is where they meet. It works for the classic model.
3. Social Media Paradigm
Now we have social media which engages the buyer and can actually target them and motivate them. Social media is an interactive tool.
4. Econ 202
Social media by its targeting moves the demand curve increasing the sellers price and hopefully profit.
5. Now let us start to manipulate these drawings:
Step 1 is to linearize:
Step 2 is to aggregate:
Step 3 is to combine:
Step 4 is to simplify!
Voila, the social media is the seller and they fit all the old antitrust paradigms! Go get them boys and girls!
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