SRH - Marketing and Economy

Social bookmarking sites are some of the most exciting and diverse on the internet and revolve around a simple concept: allow users to recommend, upvote and comment on web content. These sites oftentimes are able to establish a sense of community through interesting stories, interactivity, collaboration and a lenient moderator policy which allows users the freedom to determine content.

It is obvious that competition is the key to reaching this market equilibrium just by allowing supply and demand to adjust themselves. To understand the way things work (not to describe them) economists are working with a model of a highly idealized form of competition called “perfect”.