So much for the investment. Below we highlight some of the key returns Community users receive. Common sense tells us that if return increases, then so will investment. But there's another dynamic at work here as well. To understand that dynamic, let's look at a related phenomenon in the field of economics.
Economists talk about a principle called price elasticity .
In brief, the principle of price elasticity says the demand for a product changes in relation to changes in the price of the product. Typically, as the price goes up, demand goes down. As the price drops, demand goes up. We believe there's a similar principle that applies when we look at the investment participants make in Online Communities. When the cost of participating goes down, the level of participation goes up.