The growing importance of online social networks makes it interesting to ask whether extant social capital can substitute for trust built through repeated interactions. It also provides fertile ground for researchers seeking to gain a deeper understanding of fundamental constructs of human...

This paper studies social learning and optimal pricing in the presence of location-based social networks, such as Foursquare. We provide an analytic model to resolve the following questions: (1) What is the optimal pricing strategy in location-based networks? (2) How do different pricing...

This paper studies the effects of information exchange and social networks on the performance of prediction markets with endogenous information acquisition. We provide a game-theoretic framework to resolve the question: Can social networks and information exchange promote the forecast efficiency...

Information aggregation mechanisms are designed explicitly for collecting and aggregating dispersed information. An excellent example of the use of this "wisdom of crowds" is a prediction market. The purpose of our Twitter-based prediction market is to suggest that carefully designed market...

Reputation system has been an important component of improving online markets’ efficiency by reducing uncertainty about the quality of the sellers. Most, if not all, reputation systems examined in the extant literature reflect the sellers’ long-term accumulative reputation, which has several...