Incentives for quality over time - the case of Facebook applications

Claussen, Jörg, Kretschmer, Tobias and Mayrhofer, Philip (2012) Incentives for quality over time - the case of Facebook applications. CEP Discussion Papers (CEPDP1133). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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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.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2012 The Author(s)
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
JEL classification:	L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance L - Industrial Organization > L5 - Regulation and Industrial Policy > L50 - General O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited:	26 Feb 2024 15:12
Last Modified:	26 Feb 2024 15:33
URI:	http://eprints.lse.ac.uk/id/eprint/121769

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