publication . Preprint . Article . 2011

An Equilibrium Model of User Generated Content

Dae-Yong Ahn; Carl F. Mela; Jason A. Duan;
Open Access
  • Published: 01 Nov 2011
This paper considers the joint creation and consumption of content on user generated content platforms (e.g., reviews or articles, chat, videos, etc.). On these platforms, users' utilities depend upon the participation of others; hence, users' expectations regarding the participation of others on the site becomes germane to their own involvement levels. Yet these beliefs are often assumed to be fixed. Accordingly, we develop a dynamic rational expectations equilibrium model of joint consumption and generation of information. We estimate the model on a novel data set from a large Internet forum site and use the model to offer recommendations regarding site strate...
free text keywords: jel:D7, jel:D8, jel:M1, jel:M3, User-generated content, The Internet, business.industry, business, Strategic complements, Marketing strategy, Rational expectations equilibrium, Consumer behaviour, Economics, Marketing

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