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The Impact of Curation Algorithms on Social Network Content Quality and Structure

Author

Listed:
  • Ron Berman

    (Marketing Department, The Wharton School, University of Pennsylvania, 3730 Walnut St., Philadelphia, PA 19103, USA)

  • Zsolt Katona

    (Marketing Department, Haas School of Business, University of California, Berkeley, 2220 Piedmont Ave., Berkeley, CA 94720, USA)

Abstract
Curation algorithms are selection and ranking algorithms on social media that help consumers experience better content. These algorithms have been blamed in the past few years for the creation of “filter bubbles” and other phenomena in social media. We analyze a platform with producers and consumers of content to understand the impact of curation algorithms on the amount of friends each consumer has and the quality of content created by each producer. Our model takes into account both vertical and horizontal differentiation and analyzes three different types of algorithms. We find that without algorithmic curation, the number of friends a consumer has and the quality of cotent on the platform are strategic complements. When algorithmic curation is introduced, the resulting process makes consumers less selective in their choice of whom to follow. In equilibrium, producers of content receive lower payoffs because they enter into a prisoner’s dilema like contest. The quality of content on the platform may increase if the marginal cost of producing this quality is high enough but not too high. Both of these effects may result theoretically in more diverse content consumed by consumers, but in equilibrium we find that a few of the algorithms may reduce the horizontal distance of matched content, which may result in a filter bubble. We identify an algorithm that focuses on filtering low quality items that results in higher quality of content as well as higher diversity under specific conditions.

Suggested Citation

  • Ron Berman & Zsolt Katona, 2016. "The Impact of Curation Algorithms on Social Network Content Quality and Structure," Working Papers 16-08, NET Institute.
    • Handle: RePEc:net:wpaper:1608
    as

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    File URL: http://www.netinst.org/Berman_16-08.pdf
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    References listed on IDEAS

    as
    1. Lesley Chiou & Catherine Tucker, 2017. "Content aggregation by platforms: The case of the news media," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(4), pages 782-805, December.
    2. Marshall Van Alstyne & Erik Brynjolfsson, 2005. "Global Village or Cyber-Balkans? Modeling and Measuring the Integration of Electronic Communities," Management Science, INFORMS, vol. 51(6), pages 851-868, June.
    3. Chrysanthos Dellarocas & Zsolt Katona & William Rand, 2013. "Media, Aggregators, and the Link Economy: Strategic Hyperlink Formation in Content Networks," Management Science, INFORMS, vol. 59(10), pages 2360-2379, October.
    4. Chrysanthos Dellarocas & Zsolt Katona & William Rand, 2010. "Media, Aggregators and the Link Economy: Strategic Hyperlink Formation in Content Networks," Working Papers 10-13, NET Institute.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Nungsari, Melati & Flanders, Sam, 2020. "Using classroom games to teach core concepts in market design, matching theory, and platform theory," International Review of Economics Education, Elsevier, vol. 35(C).

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    More about this item

    Keywords

    Social Media; Filtering; Ranking; Filter Bubble; Algorithmic Curation; Game Theory;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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