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Social Ties and User-Generated Content: Evidence from an Online Social Network

Author

Listed:
  • Scott K. Shriver

    (Columbia Business School, Columbia University, New York, New York 10027)

  • Harikesh S. Nair

    (Graduate School of Business, Stanford University, Stanford, California 94305)

  • Reto Hofstetter

    (Center for Customer Insight, University of St. Gallen, CH-9000 St. Gallen, Switzerland)

Abstract

We exploit changes in wind speeds at surfing locations in Switzerland as a source of variation in users' propensity to post content about their surfing activity on an online social network. We exploit this variation to test whether users' online content-generation activity is codetermined with their social ties. Economically significant effects of this type can produce positive feedback that generates local network effects in content generation. When quantitatively significant, the increased content and tie density arising from the network effect induces more visitation and browsing on the site, which fuels growth by generating advertising revenue. We find evidence consistent with such network effects. This paper was accepted by J. Miguel Villas-Boas, marketing.

Suggested Citation

  • Scott K. Shriver & Harikesh S. Nair & Reto Hofstetter, 2013. "Social Ties and User-Generated Content: Evidence from an Online Social Network," Management Science, INFORMS, vol. 59(6), pages 1425-1443, June.
    • Handle: RePEc:inm:ormnsc:v:59:y:2013:i:6:p:1425-1443
    DOI: 10.1287/mnsc.1110.1648
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    More about this item

    Keywords

    marketing; user-generated content; social networks; monotone treatment response; monotone treatment selection; monotone instrumental variables; homophily; endogenous group formation; correlated unobservables; endogeneity;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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