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Incentives for Quality over Time – The Case of Facebook Applications

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  • Claussen, Jörg
  • Kretschmer, Tobias
  • Mayrhofer, Philip

Abstract

We study the market for applications on Facebook, the dominant platform for social networking and make use of a rule change by Facebook by which high-quality applications were rewarded with further opportunities to engage users. We find that the change led to quality being a more important driver of usage while sheer network size became less important. Further, we find that update frequency helps applications maintain higher usage, while generally usage of Facebook applications declines less rapidly with age.

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File URL: http://epub.ub.uni-muenchen.de/12500/2/ClaussenKretschmerMayrhofer-Incentives_for_Quality_over_Time-The_Case_of_Facebook_Applications-LMU_WP.pdf
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Bibliographic Info

Paper provided by University of Munich, Munich School of Management in its series Discussion Papers in Business Administration with number 12500.

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Date of creation: 2010
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Handle: RePEc:lmu:msmdpa:12500

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Keywords: usage intensity social media platform management two-sided markets;

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Cited by:
  1. Hanna Halaburda & Yaron Yehezkel, 2012. "The Role of Coordination Bias in Platform Competition," Working Papers 12-03, NET Institute, revised Sep 2012.

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