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May 26, 2009 / Raffy Pekson II

Do Friends Influence Purchases in a Social Network?

Sunil Gupta is the Edward W. Carter Professor of Business Administration at Harvard Business School. He shares his insights on the business viability of social networking sites. His paper describes the significant and positive impact of friends’ purchases on the purchase probability of a user, the social influences as it translates into revenues and the negative social effects that reduce such revenues.

Go to Harvard Business School’s Working Knowledge to download his paper.

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