Discussion

Is Facebook’s success really an example of successful differentiation? Why isn’t the rise of Facebook better explained by network externalities?

  • How are economic markets are supposed to work if every product is differentiated? Properly functioning economic markets are supposed to deliver allocative and productive efficiency, and they’re supposed to maximize social surplus. Will markets comprised of differentiated products deliver these outcomes? Why or why not? What does the Walters chapter say is necessary if markets are to function properly? Why is this question important?
  • When does marketing become lying?
  • What does it mean to “hire” a product to do a “job” for you? Is this a useful perspective? Why or why not?
  • What does it mean to map the consumption chain?
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