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Seminarios académicos y conferencias

Andrés Hervás-Drane, Cass Business School

“Big Data in the Social Media Platform”

24 Abril 2019 - 17:15 hrs.

Sala 209, Facultad de Ciencias Económicas y Administrativas UC

Abstract: We model the social media conversation by formalizing the interactions between a social media platform, consumers, and firms. Consumers derive positive utility from interacting with other consumers and make decisions regarding their participation and the extent of their networking activity. Firms compete for consumer attention to generate impact, which translates into additional sales and higher margins in the marketplace, and make decisions regarding their participation and the extent of their campaigning activity. Our analysis focuses on the platform’s strategic choices relating to big data exploitation. The platform makes pricing decisions and generates value for participants by exploiting the information generated on the service, subject to consumer privacy concerns. Our model provides an endogenous characterization of the social media conversation, explains the platform’s tradeoffs associated with big data exploitation and the performance of subscription and ad-sponsored business models, and generates implications for policy and empirical work in the marketplace for social media services.