Platforms like Facebook, Instagram, and WhatsApp have revolutionized how we connect, share, and communicate. The book highlights how Facebook's acquisition of Instagram for $1 billion and WhatsApp for over $20 billion underscores the immense value of network effects. These platforms thrive on user engagement, where each additional user enhances the value for all other users. The authors emphasize that 'the scarce resource in quantitative investing is talent,' which platforms like Quantopian leverage by crowd-sourcing algorithms from a global community of data scientists. | Erik Brynjolfsson | Machine, Platform, Crowd

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The Power of Platforms and Network Effects

Platforms like Facebook, Instagram, and WhatsApp have revolutionized how we connect, share, and communicate. The book highlights how Facebook's acquisition of Instagram for $1 billion and WhatsApp for over $20 billion underscores the immense value of network effects. These platforms thrive on user engagement, where each additional user enhances the value for all other users. The authors emphasize that 'the scarce resource in quantitative investing is talent,' which platforms like Quantopian leverage by crowd-sourcing algorithms from a global community of data scientists.

-- Erik Brynjolfsson