Researchers at Facebook, Lars Backstrom; Eric Sun; Cameron Marlow, leveraged this research to further investigate using this relationship between friendship and 'distance' and to develop reasonable algorithms to use this relationship to predict friend location.
As an aside, the typical approach used by smart phone application developers to determine geographic location is to leverage the handset's IP address. For example, Skyhook allows developers to submit handset IP address and Skyhook will return a geograph lat-long. This approach provides a reasonable estimation of location, however due to the 'reassignment' nature of IP addresses, this approach is error-prone and, according to Backstrom, Sun, Marlow, is only accurate 57.2% of the time.
Amazingly, in Find me if you can: Improving geographical prediction with social and spatial proximity, Backstrom, Sun, Marlow leveraged the location of one's friends to determine your location to accuracy greater than that of IP geolocation. With 16 friends sharing location, they were able to determine your location within 25miles ~67.5% of the time!
The obvious implication of this research is that the historical approach of lat-long:IP relationships could technically be augmented with friendship only data to improve results. More interested, potentially controversial, is where many users may opt to not explicitly share their location with vendors such as Skyhook, approaches exist, more accurately, to determine YOUR location if your friends share theirs (ie your friends are indirectly providing services such as Facebook your locations when they 'check in').
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