How Social Media Networks Influence Economies

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Such a brilliant article! Extremely well researched and goes in-depth about all the reasons why social media is really democratizing our access to information and marketplaces, something I (& I’m sure many of us) feel instinctively.

Sukhnidh Kaur

The atomic theory of economics states that individual people or business are supposed to be independent of one another and uninfluenced by each other’s decisions, having fixed desires and preferences. However, social media platforms like Facebook, Instagram, Twitter, and YouTube introduce a strong interconnectedness within users’ lives which proliferates communication, expression, and information-sharing. This leads to a significant influence of social media and its characteristic networking ability on local and global economies.

Oanna Anna Papachristou classifies digital social networks as belonging to a ‘small-world network’, wherein connections between individual nodes allow the process of linkage of one node to another to unfold within a small number of steps. Social media counteracts the atomic theory by strengthening collective behaviour, lessening information asymmetry, and allowing for the creation of a global network of consumers and producers who are interconnected amongst and with one another. Papachristou explores the idea of social media leading…

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