How will Facebook justify its enormous valuation? Prof. Vasant Dhar discusses his idea of Facebook as information market on CNBC with Henry Blodgett.
Vasant Dhar is a Professor, Head of the Information Systems Group, and Director for the Center for Digital Economy Research at the Stern School of Business at NYU. He recently
wrote an op-ed in Wired which proposed that
Facebook become world's largest information market.
Henry Blodgett
is a former equity research analyst, and now the editor and CEO of The Business Insider.
Vasant Dhar:
As an example, Nike wants to reach
people over 40 in south africa. Facebook provides a really
easy-to-use platform for doing that, people get compensated for
providing information, Facebook clears the transaction. ...
It makes advertising more efficient.
Blodgett
Facebook's new users are worth less than existing users