Incentives for Quality over Time – The Case of Facebook Applications

Claussen, Jörg ; Kretschmer, Tobias and Mayrhofer, Philip (2010): Incentives for Quality over Time – The Case of Facebook Applications. Discussion Papers in Business Administration 2010-6

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: Paper
• Form of publication: Preprint
• Keywords: usage intensity social media platform management two-sided markets
• Faculties: Munich School of Management > Discussion Papers > Communication Economics; Munich School of Management > Institute for Strategy, Technology and Organization
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: L1, L50, O33
• Language: English