Media, aggregators, and the link economy: Strategic hyperlink formation in content networks

Management Science

Volumn 59, Issue 10, 2013, Pages 2360-2379

  Dellarocas, Chrysanthos ^a   Katona, Zsolt ^b   Rand, William ^c  

^a BOSTON UNIVERSITY   (United States)

^b UNIVERSITY OF CALIFORNIA   (United States)

^c UNIVERSITY OF MARYLAND   (United States)

Author keywords

Content strategies; Marketing; Media economics; Network formation; News and journalism

Indexed keywords

CONTENT AGGREGATORS; CONTENT ECOSYSTEMS; CONTENT STRATEGIES; MEDIA ECONOMICS; NETWORK FORMATION; NEWS AND JOURNALISM; QUALITY OF CONTENTS; THIRD-PARTY CONTENT;

COMPLEX NETWORKS; HYPERTEXT SYSTEMS; MARKETING; WORLD WIDE WEB;

ECONOMICS;

EID: 84877647092     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.2013.1710     Document Type: Article

References (40)

1. Alba J, Lynch J, Weitz B, Janiszewski C, Lutz R, Sawyer A, Wood S (1997) Interactive home shopping: Consumer, retailer and manufacturer incentives to participate in electronic marketplaces. J. Marketing 61(3):38-53.
2. American Library Association (2013) Hypertext linking and copyright issues. Accessed April 21, 2013, http://www.ala.org/ala/issuesadvocacy/ copyright/copyrightarticle/hypertextlinking.cfm.
3. Bakos Y (1997) Reducing buyer search costs: Implications for electronic marketplaces. Management Sci. 43(12):1676-1692.
4. Bala V, Goyal S (2000) A non-cooperative model of network formation. Econometrica 68(5):1181-1229.
5. Bloch F, Dutta B (2009) Communication networks with endogenous link strength. Games Econom. Behav. 66(1):39-56.
6. Blood R (2002) The Weblog Handbook: Practical Advice on Creating and Maintaining Your Blog (Perseus Publishing, Cambridge, MA).
7. Bramoulle Y, Kranton R (2007) Public goods in networks. J. Econom. Theory 135(1):478-494.
8. Brin S, Page L (1998) The anatomy of a large-scale hypertextual Web search engine. Comput. Networks and ISDN Systems 30:107-117.
9. Calin M, Dellarocas C, Palme E, Sutanto J (2013) Attention allocation in information-rich environments: The case of news aggregators. Research Paper 2013-4, Boston University School of Management, Boston. http://ssrn. com/abstract=2225359.
10. Chiou L, Tucker C (2011) Copyright, digitization, and aggregation. Working Paper 11-18, NET Institute, New York. http://ssrn. com/abstract=1864203.
11. Coscarelli J (2010) Rupert Murdoch begins blocking news aggregators, search engines. Mediaite (January 9), http://www.mediaite.com/online/rupert- murdoch-begins-blocking-new-aggregators-search-engines/.
12. Dewan RM, Freimer ML, Seidmann A, Zhang J (2004) Web portals: Evidence and analysis of media concentration. J. Management Inform. Systems 21(2):181-199.
13. Dubins LE, Savage LJ (1965) How to Gamble If You Must: Inequalities for Stochastic Processes (McGraw-Hill, New York).
14. Federal Trade Commission (FTC) (2010) Potential policy recommendations to support the reinvention of journalism. Federal Trade Commission Staff Discussion Draft. Accessed April 21, 2013, http://www.ftc.gov/opp/workshops/ news/jun15/docs/new-staff-discussion.pdf.
15. Galeotti A, Goyal S (2010) The law of the few. Amer. Econom. Rev. 100(4):1468-1492.
16. Galeotti A, Goyal S, Jackson MO, Vega-Redondo F, Yariv L (2010) Network games. Rev. Econom. Stud. 77(1):218-244.
17. Huberman BA, Adamic LA (1999) Internet: Growth dynamics of the World Wide Web. Nature 401(6749):131.
18. Huberman BA, Pirolli P, Pitkow J, Lukose R (1998) Strong regularities in World Wide Web surfing. Science 280(5360):94-97.
19. Jackson MO (2008) Social and Economic Networks (Princeton University Press, Princeton, NJ).
20. Jarvis J (2008) The link economy vs. the content economy. Buzzmachine Blog (June 18), http://www.buzzmachine.com/2008/06/18/the-link-economy-v-the- content-economy/.
21. Johnson EJ, Moe WM, Fader PS, Bellman S, Lohse GL (2004) On the depth and dynamics of online search behavior. Management Sci. 50(3):299-308.
22. Karp S (2007) The Web's link-driven attention economy. Publishing 2.0 (December 15), http://publishing2.com/2007/12/15/the-webs-link-driven-attention- economy/.
23. Katona Z, Sarvary M (2008) Network formation and the structure of the commercial World Wide Web. Marketing Sci. 27(5):764-778.
24. Katz ML, Shapiro C (1994) Systems competition and network effects. J. Econom. Perspect. 8(2):93-115.
25. Kleinberg J, Suri S, Tardos E, Wexler T (2008) Strategic network formation with structural holes. Fortnow L, Riedl J, Sandholm T, eds. Proc. 9th ACM Conf. Electronic Commerce (ACM, New York), 284-293.
26. Kominers SD (2009) Sticky content and the structure of the commercial Web. 2009 Workshop on the Economics of Networks, Systems and Computation (NetEcon'09).
27. Lal R, Sarvary M (1999) When and how is the Internet likely to decrease price competition. Marketing Sci. 18(4):485-503.
28. Lashinsky A (2009) CEO Eric Schmidt wishes he could rescue newspapers. CNN Money (January 7), http://money.cnn. com/2009/01/07/technology/lashinsky- google.fortune/.
29. Lynch JG, Ariely D (2000) Wine online: Search costs effect competition on price, quality and distribution. Marketing Sci. 19(1):83-103.
30. Ma L (2010) A dynamic competitive analysis of content production and link formation of Internet content developers. Working paper, University of Maryland, College Park.
31. Mayzlin D, Yoganarasimhan H (2012) Link to success: How blogs build an audience by promoting rivals. Management Sci. 58(9):1651-1668.
32. Pennock DM, Flake GW, Lawrence S, Glover EJ, Giles CL (2002) Winners don't take all: Characterizing the competition for links on the Web. Proc. Natl. Acad. Sci. USA 99(8):5207-5211.
33. Purcell K, Rainie L, Mitchell A, Rosenstiel T, Olmstead K (2010) Understanding the participatory news consumer. Research Report, Pew Internet and American Life Project, Pew Research Center, Washington, DC.
34. Ratchford BT, Talukdar D, Lee M-S (2001) A model of consumer choice of the Internet as an information source. Internat. J. Electronic Commerce 5(3):7-21.
35. Samuel H (2010) France plans 'Google tax' on Internet searches. The Telegraph (January 7), shttp://www.telegraph.co.uk/technology/google/6947706/ France-plans-Google-tax-on-internet-searches.html.
36. Smillie D (2009) Google vs. the News. Forbes (April 6), http://www.forbes.com/2009/04/06/google-ap-newspapers-business-media-copyright. html.
37. Steiner PO (1952) Program patterns and preferences, and the workability of competition in radio broadcasting. Quart. J. Econom. 66(2):194-223.
38. Tullock G (1980) Efficient rent seeking. Buchanan J, Tollison R, Tullock G, eds. Towards a Theory of the Rent-Seeking Society (Texas A&M University Press, College Station, TX), 97-112.
39. Wolinsky A (1984) Product differentiation with imperfect information. Rev. Econom. Stud. 51(1):53-61.
40. Wu F, Huberman BA (2008) Popularity, novelty and attention. Fortnow L, Riedl J, Sandholm T, eds. Proc. 9th ACM Conf. Electronic Commerce (ACM, New York), 240-245.