Is it a good idea to encourage ALL employees to trade in these markets? Should insiders and/or highly uninformed people be allowed to trade? Do they help or hurt the market?
Yes, I think it’s a good idea to encourage all employees to trade in prediction markets for a variety of reasons. First, it can provide companies with valuable statistical data from a large population, helping them to make better business and forecasting decisions. This in turn can be use for marketing purposes and finding new and upcoming trends. Another important reason is this information can be free. Companies spend thousands, if not millions of dollars researching marketing trends, and companies can use this tool to cut these costs. Also, the company will save the end customer money through the cost savings. Finally, this strategy fits very well with the Google’s philosophy of democracy works best. The more people are involved, the more accurate these markets will become. Furthermore, I think insiders and highly uninformed people should be allowed to trade as well, because it not only simulates the real world but also informs everyone. If the insiders did not participate, then there would be information gap between the insiders and the public. By not freely releasing information, they will hurt the market by creating arbitrage opportunities and inefficiencies. The bottom line is that prediction markets are still a prediction and have some margin of error. Therefore, people and companies will need to know and understand these risks before jumping in with both feet.
Thursday, April 23, 2009
Thursday, April 16, 2009
Threadless
In what other industries or areas would Threadless’ community-driven product development model work well? And not so well?
The Threadless model is where people can post their own designs and the community or members will vote on the product before it is produced. This type of model could work well in other industries or other online business like the automotive industry or online art and music sales. For the car industry, I think you could have people submit their own designs online to the manufacturers. Then the manufacturers post the feasible designs online and have the public choose the best designs. I think this could work because it would involve the customers more in the production process, therefore adding value to the end product. The online art and music can work the same way. Artist can post material and have the community pick the ones they like the best for production. The industries where this would not work so well are ones where there is little or no product differentiation, like household goods. Also, industries that require expert knowledge and opinion like pharmaceutical industry. Having general opinions would provided no real benefit and would really waste the time of the companies and employees.
The Threadless model is where people can post their own designs and the community or members will vote on the product before it is produced. This type of model could work well in other industries or other online business like the automotive industry or online art and music sales. For the car industry, I think you could have people submit their own designs online to the manufacturers. Then the manufacturers post the feasible designs online and have the public choose the best designs. I think this could work because it would involve the customers more in the production process, therefore adding value to the end product. The online art and music can work the same way. Artist can post material and have the community pick the ones they like the best for production. The industries where this would not work so well are ones where there is little or no product differentiation, like household goods. Also, industries that require expert knowledge and opinion like pharmaceutical industry. Having general opinions would provided no real benefit and would really waste the time of the companies and employees.
Wednesday, April 8, 2009
Online social networks
Online social networks have become ubiquitous in the past few years. What forms of value do users get from these services and who is most likely to sign up on LinkedIn versus other sites?
The evolution of online social networks over the past few years is really amazing phenomenon because it went from a little known platform of personal expression to capturing the attention of millions of people. These social networks have allowed people to reconnect with friends, meet new people and share what is happening in their life, like watching NASCAR races and drinking beer. The value that the customer receives from these sites is from being able to post material about their life either through blogs, pictures, videos, messages, and allow their friends and family to see and comment on them. Social networks provide an easy way for many people to keep in touch that would have been nearly impossible otherwise. LinkedIn is a social network design for business people. It provides an easy way for business people to network, recruit, or connect with other likeminded people. This network provides a platform where; jobs can be posted, people can search for industry experts, and people can sell ideas or businesses.
The evolution of online social networks over the past few years is really amazing phenomenon because it went from a little known platform of personal expression to capturing the attention of millions of people. These social networks have allowed people to reconnect with friends, meet new people and share what is happening in their life, like watching NASCAR races and drinking beer. The value that the customer receives from these sites is from being able to post material about their life either through blogs, pictures, videos, messages, and allow their friends and family to see and comment on them. Social networks provide an easy way for many people to keep in touch that would have been nearly impossible otherwise. LinkedIn is a social network design for business people. It provides an easy way for business people to network, recruit, or connect with other likeminded people. This network provides a platform where; jobs can be posted, people can search for industry experts, and people can sell ideas or businesses.
Thursday, April 2, 2009
Wikipedia's
How do Wikipedia’s processes for creating and modifying articles ever lead to high-quality results?
Wikipedia’s process allows them to control who can post material and by allowing other posters to edit and delete inaccurate articles. By having people register with Wikipedia, they can control the contributions made by each user and if need be, revoke their access rights. Furthermore, Wikipedia banks on the fact that other users want accurate and high-quality information and they will monitor and correct inaccurate information. This hypothesis will stay true as long as users demand good information.
Wikipedia’s process allows them to control who can post material and by allowing other posters to edit and delete inaccurate articles. By having people register with Wikipedia, they can control the contributions made by each user and if need be, revoke their access rights. Furthermore, Wikipedia banks on the fact that other users want accurate and high-quality information and they will monitor and correct inaccurate information. This hypothesis will stay true as long as users demand good information.
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