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2013 | Book

Introduction Read chapter Read first chapter

Interdependencies in the Discovery and Adoption of Facebook Applications

An Empirical Investigation

Author: Philip Mayrhofer

Publisher: Springer Fachmedien Wiesbaden

Book Series : Innovation und Entrepreneurship

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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About this book

Facebook Platform is a prominent example of an internet-based service for which third-party developers can offer small add-on 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 long-tail of unpopular ones is common in the media, entertainment and software industries. Philip Mayrhofer compiled individual-level 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. ​

Table of Contents

Frontmatter
1. Introduction
Abstract
Within less than six years of its founding, Facebook has developed from an upstart in online social networking and a phenomenon of growth and user adoption to a platform that has redefined how people worldwide interact with each other.
Philip Mayrhofer
2. Capture and curation of a data set on Facebook applications
Abstract
An important and extensive part of this dissertation consisted of building an original data set on Facebook developers and applications. With the start of the platform in May 2007, Facebook introduced a directory in which applications were listed, on a daily basis, with information on their functionality, their developers, their usage, and user reviews.
Philip Mayrhofer
3. Descriptive analysis of secondary interdependencies
Abstract
It is the main objective of this dissertation to examine the interdependencies that influence whether and to which extent individuals choose to adopt and use applications. I primarily focus on two questions. First, I study interdependencies between users by analyzing individual-level decisions in the adoption of Facebook applications and how they are influenced by active and passive social influence from their friends (see chapter 4).
Philip Mayrhofer
4. Interdependencies between users
Abstract
The adoption and diffusion patterns of new products have long been of interest to scholars from management and economics. A plethora of studies aimed at explaining the emergence of the typical S-shaped diffusion curve (Rogers 1983) and identified various drivers that influence the diffusion and adoption of new products.
Philip Mayrhofer
5. Interdependencies between applications
Abstract
The descriptive analysis of Facebook’s platform for applications in section 3.3.2 showed that application success, with regard to application usage, is highly skewed. Economists are interested in highly concentrated markets because of the inherent risk of welfare loss due to inefficiencies such as the lack of incentives for producers to market products (in this dissertation: Facebook applications) that only few consumers appreciate.
Philip Mayrhofer
6. Summary and conclusion
Abstract
This chapter concludes the dissertation by summarizing the previous chapters and concluding with regard to the contribution of the findings to the discussion on market concentration in digital industries.
Philip Mayrhofer
Backmatter
Metadata
Title
Interdependencies in the Discovery and Adoption of Facebook Applications
Author
Philip Mayrhofer
Copyright Year
2013
Publisher
Springer Fachmedien Wiesbaden
Electronic ISBN
978-3-8349-3887-9
Print ISBN
978-3-8349-3886-2
DOI
https://doi.org/10.1007/978-3-8349-3887-9