Why Are Some Social Media Sites Free to Use?

Abstract: If companies always try to maximize profits, why are so many social media sites free to use? Learn how these platforms operate, as well as what positive and negative “network effects” are at play, in this May 2023 issue of Page One Economics.

Keywords: social media; network effects;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Page One Economics Newsletter

Publication Date: 2023-05

Pages: 5 pages