Facebook Applications

I was on facebook this morning and on my newsfeed noticed lots of Farmville/Fishville or whatever __ville application updates and it reminded me of how when you add or access an application on Facebook it will ask for your permission to view your profile/account information. My main question is what is that information being used for? I would assume it is marketing, but as far as privacy is concerned should those who choose to partake in these applications be concerned that their private information is being sent out to third party sources?

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