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Appleton susan ass2_net303

by on Oct 21, 2012





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  • StefanoSpirito Stefano Spirito Great presentation Susan, I am one of the many people that have mindlessly accepted Facebook’s Terms of Service without reading it first. I like the way you identified Facebook’s positive aspects as well as the negatives ones regarding its Terms of Service. Privacy is definitely one of my greatest concerns related to Facebook. For instance users have the option to increase their privacy settings, which protects users by limiting the amount of visible personal information and content; however as you point out in your presentation, Facebook reserves the right of “a non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use this content”.

    There is no doubt that most of Facebook’s revenue comes from targeted advertisement (Constine, 2012), Arvind Bhatia, an analyst with Sterne Agee Financial Services suggests that “Facebook's unprecedented advertising advantage is built upon the service it provides. As users interact with the site, they gradually build a fuller and fuller picture of themselves. That, in turn, lets Facebook sell advertisers on its ability to put their product in front of the people most likely to be interested” (Gross, 2012). In other words Facebook take advantage of users collected data to target them with more effective advertisements. As you said in your presentation, Facebook “collect data every time a user interacts on Facebook”.

    Back in 1978, about 25 years before Facebook’s public debut, Richard Posner, an American jurist, economist and legal theorist, had already realized the importance of personal information in the field of economics (Posner, 1978). Posner (1978) considers privacy as an “intermediate good”, he said: “people invariably possess information, including facts about themselves and contents of communications, that they will incur costs to conceal. Sometimes such information is of value to others: that is, others will incur costs to discover it” (Posner, 1978). Posner (1978) concluded that privacy protection is economically inefficient.

    Constine, J. (2012, February 1). Facebook’s Revenue Growth Strategy: Ad Targeting By In-App Behavior. Retrieved from TechCrunch website:

    Gross, D. (2012, May 16). How you help Facebook make billions . Retrieved from CNN website:

    Posner, R. (1978). 'The Right of Privacy' Sibley Lectures. Paper 22. Retrieved from University of Georgia website:
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Appleton susan ass2_net303 Appleton susan ass2_net303 Presentation Transcript