Interdependencies in the Discovery and Adoption of Facebook Applications: An Empirical Investigation (Innovation und Entrepreneu,Used

Interdependencies in the Discovery and Adoption of Facebook Applications: An Empirical Investigation (Innovation und Entrepreneu,Used

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Facebook Platform is a prominent example of an internetbased service for which thirdparty developers can offer small addon programs, which are often referred to as applications. The distribution of success of applications is highly skewed. This market structure with few blockbuster applications and a longtail of unpopular ones is common in the media, entertainment and software industries. Philip Mayrhofer compiled individuallevel survey data as well as an original panel data set of Facebook applications in order to examine the market for Facebook applications in detail. Specifically he identifies interdependencies such as bandwagon effects between users and spillovers between applications and analyzes whether they contribute to the concentrated market structure.

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