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Science Quickly

Facebook Users Value the Service More Than Investors Do

Science Quickly

Scientific American

Science

4.41.4K Ratings

🗓️ 2 January 2019

⏱️ 2 minutes

🧾️ Download transcript

Summary

Users of the social network said they'd require payment of more than $1,000 to quit the platform for one year. Christopher Intagliata reports. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This is

0:02.0

is Scientific American 60 Second Science.

0:05.0

I'm Christopher Intagiato.

0:07.0

Facebook is currently worth some 400 billion dollars

0:10.0

to its shareholders, which might seem like a lot.

0:13.1

But a recent study suggests the company's worth

0:15.1

many times more than that to its users.

0:17.6

Basically, our punchline is that Facebook does seem

0:19.7

to bring value to its users.

0:21.3

And maybe that's the nicest thing anybody said about Mark Zuckerberg all year,

0:24.4

you know but it does seem to bring joy or utility to people.

0:27.3

Sean B. Cash is an economist at Tufts University in Boston.

0:31.0

He and his team asked some 1,300 Facebook users from colleges, community, and online

0:35.4

samples to put a dollar figure on the value the social network brings to their lives.

0:40.4

Specifically, they asked users how much they'd need to be paid to deactivate their accounts.

0:45.4

And the stakes were real.

0:46.8

If a user's offer was accepted, she'd have to deactivate our account for up to a year.

0:51.4

And Cash, remember, that's the actual name of the

0:53.8

economist, cash, would have to pony up the money. We did have some budget-breaking

0:58.2

surprises. But just how big of a surprise? Cash and his team found that on

1:02.1

average users asked for more than a

1:03.7

thousand dollars in exchange for shutting down their accounts for a year. They

...

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