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Companies cannot usually capture all the value they create.

And yet companies like Facebook capture many orders of magnitude MORE value than they create.

The estimates in the study are for liberal arts college students (likely relatively Wwealthy vs US users as a whole), and if I’m not mistaken, US Facebook users have ARPU of as much as 10x other regions. If the WTP is also distributed like that, you could take your estima-te down by an order of magnitude even before network effects

> But we should consider something like Metcalfe's law, as pointed out by berbec

Giving, in this case, a value of $750B (at a P/S ratio of 1)

https://www.wolframalpha.com/input/?i=Sum%5Bn+6.67e-7,+%7Bn,...

DAU probably means "daily active user" here.

Appreciate the clarification. Almost picked it up from context, but was still a little curious (searching the internet for an contextual acronym is never efficient)