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Incentives for Quality over Time - The Case of Facebook Applications

  • Jörg Claussen
  • Tobias Kretschmer
  • Philip Mayrhofer

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://cep.lse.ac.uk/pubs/download/dp1133.pdf
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1133.

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Date of creation: Mar 2012
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Handle: RePEc:cep:cepdps:dp1133
Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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