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Network engagement from learning friends’ preferences: evidence from a video gaming social network

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  • Michael R. Ward

    (University of Texas in Arlington and ZEW Mannheim)

Abstract

Increased similarity with one’s friends’ choices in a social network leads a user to engage further with the social network. Participation is modelled based on user utility derived both from participating in preferred events and from joint participation with friends. The model implies that users will participate more as they learn that they share more interests with their friends. These implications are tested using panel data from an online video gaming network in which users can learn the characteristics of friends’ recent game play behaviour. The focal user’s time on the platform increases substantially as friend’s choices become more similar to the focal user’s behaviour. These results are robust to multiple possible sources of endogeneity.

Suggested Citation

  • Michael R. Ward, 2022. "Network engagement from learning friends’ preferences: evidence from a video gaming social network," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1239-1255, September.
    • Handle: RePEc:spr:elmark:v:32:y:2022:i:3:d:10.1007_s12525-022-00583-7
    DOI: 10.1007/s12525-022-00583-7
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    References listed on IDEAS

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    Cited by:

    1. Xinyi Lyu & Tiaojun Xiao & Jingquan Li, 2024. "Evolution of direct network effects: A perspective of market thickness of an online freight platform," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-16, December.
    2. Rainer Alt, 2022. "Electronic Markets on platform culture," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1019-1031, September.

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    More about this item

    Keywords

    Homophily; Engagement; Video games; Social network;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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