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user generated content

November 3rd – Sabyasachi Mitra to Present “Network Effects and the Value of User Generated Content”

October 27, 2017 By Jing Gong

Network Effects and the Value of User Generated Content

by

Sabyasachi Mitra

Professor and Senior Associate Dean of Programs

Scheller College of Business, Georgia Institute of Technology

Friday, November 3, 2017

10:30 AM – 12:00 PM

Speakman Hall Suite 200

Abstract

The primary product of many internet firms is their website that generates revenue through advertising, subscription or referral fees. Sky-high valuations of these firms have generated significant interest, debate, and even euphoria among investors and entrepreneurs. Network effects provide the underlying logic behind these high valuations – the idea that the value of participation for an individual user increases exponentially as more users actively participate. Thus, many firms initially focus on generating usage, with the expectation of high revenues and profits later, a premise that is fraught with uncertainty. These firms often rely on a wide variety of user-generated content to attract users to their websites. In this paper, we argue that the type of content on the website affects switching costs for the user and plays an important role in the value of internet firms since high current usage may not translate into future revenue and profits when switching costs are low. We use a grounded approach to classify websites into firm generated content, user contributed content and interaction websites. We collect data about the valuation, traffic and other parameters of such websites from several sources. We argue that interaction websites that provide a platform for interactions between social or interest groups create switching costs for the user more than other types of websites and we demonstrate empirically that network effects in firm value are stronger for interaction websites. Our results indicate that user-generated content has a greater value when created through interactions within social groups. We also demonstrate that the signal of firm quality through venture capital funding has a greater effect on firm value for websites that are based on user-generated rather than firm-generated content because of the inherent uncertainty associated with monetizing user-generated content.

Tagged With: georgia tech, Network Effects, Sabyasachi Mitra, UGC, user generated content

Nov 19: Jerry Kane to speak on Online communities of practice and user generated content

November 16, 2010 By Sunil Wattal

Gerald C. (Jerry) Kane

Assistant Professor,
Carroll School of Management,
Boston College

November 19, 2010

Speakman Hall 200, 1000am – 1130am

Jerry will present two papers related to online communities of practice and user generated content.

Title 1: Network Characteristics and the Value of Collaborative User-Generated Content

Abstract 1

User-generated content increasingly is created through the collaborative e
orts of multiple individuals. Characteristics of the network associated with the creation of collaborative content should therefore influence content value. A social network analysis, applied to Wikipedia’s Medicine Wikiproject, reveals a curvilinear relationship between the number of distinct contributors to user-generated content and viewership. Glob ally central content|characterized by connections to more prominent collaborative content in the overall network|generates greater viewership. Contrary to previous theory, locally central content|characterized by greater intensity of work by contributors to multiple content source is negatively associated with viewership. In addition, network e
ects are stronger for newer collaborative user-generated content. A recursive relationship between contribution and viewership activity suggests a virtuous cycle between the value ofand contribution to user-generated content, but this dynamic matures and stabilizes over time. Finally, effects of network characteristics on value di
er for the most and least viewed content. These
findings have implications for fostering collaborative user-generated content.

Title 2: A Longitudinal Model of Perspective making and Perspective Taking within Fluid Online Collectives

Abstract 2

Although considerable research has investigated perspective making and perspective taking processes in existing communities of practice, little research has explored how these processes are manifest in fluid online collectives. Fluid collectives do not share common emotional bonds, shared languages, mental models, or clearly defined boundaries that are common in communities of practices and that aid in the perspective development process. This paper conducts a retrospective case study of a revelatory online collective – the autism article on Wikipedia – to explore how the collective develops a perspective over time with a fluid group of diverse participants surrounding a highly contentious issue. We find that the collective develops a perspective over time through three archetypical challenges – chaotic perspective taking, perspective shaping, and perspective defending. Using this data, we develop a longitudinal model of perspective development. The theoretical implications are discussed and a set of propositions are developed for testing in more generalized settings.

For a copy of the paper1, click here.

For a copy of the paper2, click here.

Tagged With: boston college, jerry kane, online communities of practice, user generated content

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