Yahoo explores network economics and social networks

Yahoo has hired two scientists to work, the specialization of which very clearly indicates the main sphere of interest of the Internet giant. This is not computer science at all.

One of the recruits - Preston McAfee (R. Preston McAfee), a professor of business, economics and management - will take the post of vice president of the department of microeconomics research. He will join a group of economists who are already working at Yahoo Research. According to McAfee himself, this is the most powerful research unit of its kind among all the companies in the world.

The second scientist - Duncan Watts, a professor of sociology and author of books on social networks - will lead research in the field of social dynamics, including in the field of social networks and collective problem solving.

Apparently, the problems of social networks and the network economy come to the fore for a modern Internet company that seeks to think about the future. Having a staff of scientists in this field is very important in order to feel the ground under your feet if you are engaged in this new business, in which so far there is no universally accepted standards or basic research. At the same time, both of these areas are critical to Yahoo.
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“The Internet is the next frontier of applications for constructing real world markets,” says McAfee. “We think about where these markets are going.”

Yahoo recently announced plans to purchase the online advertising exchange Right Media, and now the Internet giant owns the virtual markets of Yahoo Personals and HotJobs (the labor market). Managing the world's largest audience of registered users, Yahoo now plans what to do with popular social sites Flickr and Yahoo Answers.

via News.com