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The Quality of Information in Electronic Groups

Author

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  • Michael Bacharach

    (University of Oxford)

  • Oliver Board

    (University of Oxford)

Abstract

We examine some of the factors that might influence the quality of information produced in discussion groups on the internet, such as USENET and the WELL. In particular, we look at the impact of various different pricing structures, and compare regimes in which anonymity is enforced with regimes in which all contributors must identify themselves. Our main finding is that the flow of quality-weighted information within the group is maximized by a regime which front loads the cost of sending messages, and identification is required. If there is a positive spillover from the intra-group transmission of good quality information, however, benefiting society at large, then the social value of the flow of quality-weighted information may be maximized by a different regime, in which all replying is anonymous. Reputation effects play a key role in our analysis: posters who have sent high quality messages in the past are considered more likely to send high quality messages in the future, and are thus more likely to be taken notice of.

Suggested Citation

  • Michael Bacharach & Oliver Board, 2002. "The Quality of Information in Electronic Groups," Netnomics, Springer, vol. 4(1), pages 73-97, March.
    • Handle: RePEc:kap:netnom:v:4:y:2002:i:1:d:10.1023_a:1014970712376
    DOI: 10.1023/A:1014970712376
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    References listed on IDEAS

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    1. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
    2. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    3. David Constant & Lee Sproull & Sara Kiesler, 1996. "The Kindness of Strangers: The Usefulness of Electronic Weak Ties for Technical Advice," Organization Science, INFORMS, vol. 7(2), pages 119-135, April.
    4. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
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    Cited by:

    1. Gaudeul, Alexia & Giannetti, Caterina, 2017. "The effect of privacy concerns on social network formation," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 233-253.

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