Open vs closed Ecosystems: Facebook Offers to Let Publishers Keep Revenue From Certain Ads

There’s a lot of misinformation about open vs closed systems.  Closed systems can internalize network effects so that flavor has a durable advantage over the long run.  Here’s a great example of how, closed platforms can internalize network effects to their advantage.  The trick is the get the flywheel going:

Facebook Inc. is offering to let publishers keep all the revenue from certain advertisements, in a bid to persuade them to distribute content through the social network, according to people familiar with the matter.

via Facebook Offers to Let Publishers Keep Revenue From Certain Ads – WSJ.

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