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Managing User-Generated Content: A Dynamic Rational Expectations Equilibrium Approach

Author

Listed:
  • Dae-Yong Ahn

    (College of Business and Economics, Chung-Ang University, Seoul 156-776, Korea)

  • Jason A. Duan

    (McCombs School of Business, University of Texas at Austin, Austin, Texas 78712)

  • Carl F. Mela

    (Fuqua School of Business, Duke University, Durham, North Carolina 27708)

Abstract

This paper considers the creation and consumption of content on user-generated content platforms, e.g., reviews, articles, chat, videos, etc. On these platforms, users’ expectations regarding the amount and timing of participation by others becomes germane to their own involvement levels. 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 offer recommendations regarding strategies of managing sponsored content and content quality.Data, as supplemental material, are available at http://dx.doi.org/10.1287/mksc.2015.0937 .

Suggested Citation

  • Dae-Yong Ahn & Jason A. Duan & Carl F. Mela, 2016. "Managing User-Generated Content: A Dynamic Rational Expectations Equilibrium Approach," Marketing Science, INFORMS, vol. 35(2), pages 284-303, March.
    • Handle: RePEc:inm:ormksc:v:35:y:2016:i:2:p:284-303
    DOI: 10.1287/mksc.2015.0937
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    References listed on IDEAS

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    Cited by:

    1. Dominik Gutt & Jürgen Neumann & Steffen Zimmermann & Dennis Kundisch & Jianqing Chen, 2018. "Design of Review Systems - A Strategic Instrument to shape Online Review Behavior and Economic Outcomes," Working Papers Dissertations 42, Paderborn University, Faculty of Business Administration and Economics.
    2. Lu, Shijie & Xie, Ying & Chen, Xingyu, 2023. "Immediate and enduring effects of digital badges on online content consumption and generation," International Journal of Research in Marketing, Elsevier, vol. 40(1), pages 146-163.
    3. Yi Liu & Pinar Yildirim & Z. John Zhang, 2022. "Implications of Revenue Models and Technology for Content Moderation Strategies," Marketing Science, INFORMS, vol. 41(4), pages 831-847, July.
    4. Xingyu Chen & Xing Li & Dai Yao & Zhimin Zhou, 2019. "Seeking the support of the silent majority: are lurking users valuable to UGC platforms?," Journal of the Academy of Marketing Science, Springer, vol. 47(6), pages 986-1004, November.
    5. Botao Yang & Sha Yang & Shantanu Dutta, 2022. "Platform Service Offering to Business Customers: Strategic Considerations in Engendering Seller Use of Marketing Tools," Marketing Science, INFORMS, vol. 41(2), pages 361-379, March.
    6. Stephan Seiler & Song Yao & Wenbo Wang, 2017. "Does Online Word of Mouth Increase Demand? (And How?) Evidence from a Natural Experiment," Marketing Science, INFORMS, vol. 36(6), pages 838-861, November.
    7. Yi Liu & Pinar Yildirim & Z. John Zhang, 2021. "Social Media, Content Moderation, and Technology," Papers 2101.04618, arXiv.org, revised Jan 2021.

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