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Abstract for:

Incentives for Quality over Time - The Case of Facebook Applications

Jörg  Claussen,  Tobias  Kretschmer,  Philip  Mayrhofer,  March 2012
Paper No' CEPDP1133: | Full paper (pdf)
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Keywords: usage intensity; social media, platform management, two-sided markets

JEL Classification: L1; L50; O33

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: CEP Discussion Papers
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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.