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

Dae-Yong Ahn (), Jason A. Duan () and Carl F. Mela ()
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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

Marketing Science, 2016, vol. 35, issue 2, 284-303

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 .

Keywords: user-generated content; marketing strategy; rational expectations; approximate aggregation (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:35:y:2016:i:2:p:284-303

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