Peer influence through word-of-mouth (WOM) plays an important role in many information systems but identification of causal effects is challenging. We identify causal WOM effects in the empirical setting of game adoption in a social network for gamers by exploiting differences in individuals’...

In markets with search frictions, consumers can acquire information about goods either through costly search or from friends via word-of-mouth (WOM) communication. How do sellers’ market power react to a very large increase in the number of consumers’ friends with whom they engage in WOM?...

Consumers can acquire information through their own search efforts or through their social network. Information diffusion via word-of-mouth communication leads to some consumers free-riding on their “friends” and less information acquisition via active search. Free-riding also has an...

The purpose of this paper is to explore the problem of power distribution within networks of relationships between companies and consumers (business-to-consumer (B2C) networks) and to examine the ways in which value is created and captured in such structures. To this end, we applied the network...

We study the problem of optimal dynamic pricing for a monopolist selling a product to consumers in a social network. In the proposed model, the only means of spread of information about the product is via Word of Mouth communication; consumers' knowledge of the product is only through friends...

Online communities generate marketing value for both firms and consumers, and their sustainability relies on continuous user engagement. In an environment in which competition for engagement is fierce, digital platforms seemingly favor the use of negative emotion to engage users. Yet, the impact...

The Web is the largest human information construct in history transforming our society. How can we understand, measure and model the Web evolution in order to design effective policies and optimize its social benefit? Early measurements of the Internet traffic and the Web graph indicated the...

Peer influence through word-of-mouth (WOM) plays an important role in many information systems but identification of causal effects is challenging. We identify causal WOM effects in the empirical setting of game adoption in a social network for gamers by exploiting differences in individuals'...

We analyze the structure of bilateral communication links among consumers in virtual communities by a game-theoretic model of network formation. First, link specificity is incorporated, meaning that the more direct links somebody has to maintain with others, the less she is able to specify her...

Background: E-commerce websites have been established expressly as useful online communication platforms, which is rather significant. Through them, users can easily perform online transactions such as shopping or ordering food and sharing their experiences or feedback. Objectives: Customers'...