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

Author

Listed:
  • Shriver, Scott K.

    (Columbia University)

  • Nair, Harikesh S.

    (Stanford University)

  • Hofstetter, Reto

    (University of St Gallen)

Abstract

We use variation in wind speeds at surfing locations in Switzerland as exogenous shifters of users' propensity to post content about their surfing activity onto an online social network. We exploit this variation to test whether users' online content generation activity has a causal effect on their social ties. Under weak monotonicity assumptions, we also estimate nonparametric bounds on the causal effect of user's social ties in turn on their content generation activity. Economically significant causal effects of the type above can produce positive feedback that generates local network effects in content generation. We find evidence for such network effects. We argue this feedback generates a multiplier effect on interventions that subsidize tie formation. We use our estimates to measure the ROI from such interventions and discuss implications for the site's monetization strategy. Our empirical strategy provides one way to address a significant identification challenge with online social network data that the observed network structure is endogenous to the actions taken by agents on the network. Augmenting the model of agent's actions with a model for the network structure requires solving a formidable network formation game. Our approach to this problem is to conduct inference with an incomplete model of network formation under weak assumptions that deliver informative bounds on the causal effects of interest, while avoiding taking a strong stand on a specific model of network formation.

Suggested Citation

  • Shriver, Scott K. & Nair, Harikesh S. & Hofstetter, Reto, 2011. "Social Ties and User-Generated Content: Evidence from an Online Social Network," Research Papers 2083, Stanford University, Graduate School of Business.
  • Handle: RePEc:ecl:stabus:2083
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    References listed on IDEAS

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    Cited by:

    1. Dae-Yong Ahn & Jason A. Duan & Carl F. Mela, 2011. "An Equilibrium Model of User Generated Content," Working Papers 11-13, NET Institute, revised Dec 2011.
    2. Gaudeul, Alexia & Giannetti, Caterina, 2011. "The role of reciprocation in social network formation, with an application to blogging," MPRA Paper 34094, University Library of Munich, Germany.
    3. Nicholas Economides & V. Brian Viard, 2010. "The Effect of Content on Global Internet Adoption and the Global “Digital Divide”," Working Papers 10-24, NET Institute, revised Sep 2013.

    More about this item

    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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