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- Title
The Quality of Interactions in Competition Between Social Media Platforms.
- Authors
Eisdorfer, Ido
- Abstract
Social media platforms are content-based platforms in which agents invest efforts to produce and share content while interacting with one another. The central question involves the trade-off between interaction quantity and content quality, and its impact on competition between an incumbent platform with a focal advantage and a high-quality new entrant seeking market entry. The study focuses on an agent's utility function, examining the interplay between these factors and exploring strategies for platform decision-makers to maximize profits and benefits for their agents. The findings show that a high-quality non-focal platform has a strategic advantage in winning the market when agents prioritize content quality over the quantity of interactions. Policymakers should take into account the quality-driven impact on market efficiency and entry barriers.
- Subjects
MARKET entry; USER-generated content; UTILITY functions; SOCIAL media
- Publication
Review of Network Economics, 2023, Vol 22, Issue 4, p185
- ISSN
1446-9022
- Publication type
Article
- DOI
10.1515/rne-2023-0068