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Two Formulas For Success In Social Media: Social Learning And Network Effects, Liangfei Qiu, Qian Tang, Andrew B. Whinston

Research Collection School Of Computing and Information Systems

This paper examines social learning and network effects that are particularly important for online videos, considering the limited marketing campaigns of user-generated content. Rather than combining both social learning and network effects under the umbrella of social contagion or peer influence, we develop a theoretical model and empirically identify social learning and network effects separately. Using a unique data set from YouTube, we find that both mechanisms have statistically and economically significant effects on video views, and which mechanism dominates depends on the specific video type.