Economics of Face book

How many substitute markets you can think of in this context?

There are various substitutes of Face book such as hotmail, yahoo and g-mial etc. With increasing access to the Internet and cell phones over the last few years, the online population has received an enormous growth worldwide. People of almost all age group can be found on the internet, whose members are active participants every day in disparate networks. Even children at present spent most of their time using internet or mobile phones, and in some cases without the consent of their parents. Therefore, this has lead to increase in the use of social networking websites. For instance, face book is one of the popular social networking website of the world, but in the market for Face book operates; there are various substitutes from which Face book has to compete.

The markets that offer substitute, while not a direct competitor of the productive market of Face book, under certain circumstances may cause the client to stop using the services offered; the productive market in the market and begin to use substitutes (Adamic, 22-45). Substitute are those that the clients of Face book can use, alternatively, when any market lowers the quality of their services below a threshold by which the customer is willing to pay or the price rises above this limit. The amount of services the customer uses related to the elasticity of service demand that is demand is more elastic when a small change to the service price generates a large-scale change in quantity demanded of it and demand are inelastic when the quantity demanded of service varies little with a change in prices (Adamic, 22-45).

The markets that offer the services, as substitutes to the services offered consists of an extensive network of business and commerce independent ...