The role of reciprocation in the formation of social networks

With an application to blogging

Alexia Gaudeul and Caterina Giannetti

Max Planck Institute of Economics, Jena Royal Holloway, University of London

13th Annual Conference of the APET June 12-14, 2012 Academia Sinica, Taipei, Taiwan

Overview

Blogging

Empirical Analysis

Conclusions

References

Overview
1 2 3

Analysis of the dynamics of network formation among bloggers Panel of 1000+ bloggers, followed over more than a year Two main factors in audience growth:
Attractive content, i.e. writing entries others will want to read Reciprocation, i.e. paying attention to others so they will pay attention to you

Which is more important reveals the nature of the activity being led within blogging network
Part of the Mass Media or A tool for social networking

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Alexia Gaudeul and Caterina Giannetti

Overview Research themes

Blogging

Empirical Analysis

Conclusions

References

Research themes
Online social networking: unprecedented, non-intrusive, and cheap access to micro data about winning friends and inuencing people [Carnegie, 1936]. Three main themes:
1 2 3

Friendship [Aristotle, ca. 350 B.C.E., De Montaigne, 1588] Competition for attention [Simon, 1971, Falkinger, 2007] Norm of reciprocity [Gouldner, 1960]

Insight
The norm of reciprocity leads to requests for friendship being usually reciprocated, so that paying attention to and initiating friendship with others helps gain attention for oneself
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Overview

Blogging

Empirical Analysis

Conclusions

References

Dierent strands in research

Blogging - Dierent strands in research

1 2 3 4

Sociology [Technorati, 2009, Lenhart and Fox, 2006] Typology [Wei, 2009] Motivation [Huang et al., 2007] Structure [Shirky, 2003, Kumar et al., 2010]

Contribution
We contribute to the literature by considering the development of bloggers audiences over time along with their activity, including the activity of adding people to ones network.

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

Modelling the activity of bloggers

Blogging - Modelling the activity of bloggers

1 2

Information gathering and transmission [Galeotti and Goyal, 2010] Content production in exchange for attention [Gaudeul and Peroni, 2010, Rui and Whinston, 2010] Building social capital [Glaeser et al., 2002]

Our approach
We adapt Glaeser et al. to take account of the role of reciprocation in the process of building an audience within blogging networks.

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

Activity, Readership and Reciprocation

Blogging - Activity, Readership and Reciprocation

Post content X

Gain readers R(X)

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

Activity, Readership and Reciprocation

Blogging - Activity, Readership and Reciprocation

Post content X

Gain readers R(X)

New Friends R(X)

Reciprocation by oneself

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

Activity, Readership and Reciprocation

Blogging - Activity, Readership and Reciprocation

Reciprocation by others
Look for friends Y

Add friends F(Y)

New Readers F(Y)

Activity Post content X Gain readers R(X) New Friends R(X)

Reciprocation by oneself

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

Activity, Readership and Reciprocation

Blogging - Activity, Readership and Reciprocation

Readers = Friends Added (Y ) + Readers Gained (X ) Friends = Friends Added (Y ) + Readers Gained (X ) So Readers = Friends + (1 ) Readers Gained (X ) Friends = Readers + (1 ) Friends Added (Y )

Estimation
We monitor readership over time, along with activity w.r.t. adding friends and contributing content, with data collected from LiveJournal, a major blog hosting site [Raynes-Goldie, 2004, Raynes-Goldie and Fono, 2006, Marwick, 2008].
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Overview The sample

Blogging

Empirical Analysis

Conclusions

References

Empirical Analysis - The sample

NATIONALITY Russian English 152 46 154 59 (43) (24) 373 92 265 84 (382) (352) 1741 175 383 111 (9) (97) (434) (473)

BLOG AGE Young

Total

Mature

Old

Total

Readers Friends N Readers Friends N Readers Friends N N

(137)

(1067)

(143) (1347)

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Alexia Gaudeul and Caterina Giannetti

Overview The sample

Blogging

Empirical Analysis

Conclusions

References

Empirical Analysis - The sample

1 2 3 4 5

Blogs accumulate readers and friends over time Blogs reciprocate less in the aggregate over time The sample is balanced in terms of languages Russian blogs are younger and bigger. English blogs have more balanced readers/friends lists

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Overview The estimation model

Blogging

Empirical Analysis

Conclusions

References

Empirical Analysis - The estimation model

We estimate the following equation: Readerst = Friendst + (1 )At + (1 (1 ))Readerst1
Reciprocation Attract Readers Depreciation

1 2

At is activity other than seeking out and adding friends Readerst1 is ones stock of Readers, which depreciates over time (boredom, disagreements, etc. . . ) Friendst = Readerst + (1 )Bt + (1 (1 ))Friendst1
Reciprocation Add Friends Depreciation

Similarly:

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Alexia Gaudeul and Caterina Giannetti

Overview The variables

Blogging

Empirical Analysis

Conclusions

References

Empirical Analysis - The variables

Stock variables are: Readers (Blogs reading the user) Friends (Blogs read by the user) Activity variables are:
1 2 3 4 5 6

Communities joined and left Entries written by the user Comments posted by the user Extroversion: Comments posted by the user / Comments received Readers Engagement: Comments received / Entries Inactivity: Number of weeks since last entry was made
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We also include blog characteristics: Age, Language, Functionalities.

The role of reciprocation in the formation of social networks

Overview Reciprocation by others

Blogging

Empirical Analysis

Conclusions

References

Empirical Analysis - Reciprocation by others

VARIABLES L.Readers log(Friends) Functionality Age blog Community joined Community left Entries Posted Extroversion Engagement Inactive Constant Observations Number of user Pooled OLS 1.004*** 17.783** 0.026 -0.003*** 0.238** 0.033 0.009** 0.011*** -0.014*** 0.011 0.004 -0.046 75,432 1,347 FE 0.986*** 16.001** 0.469*** 0.020*** 0.207* 0.039 0.010* 0.022*** -0.015*** 0.012 -0.018*** -3.038** 75,432 1,347
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SYS GMM 0.985*** 25.786*** 0.776 0.237* 0.567 0.497** -0.080 0.148*** -0.136*** 0.071** -0.016 -22.337 75,432 1,347
Alexia Gaudeul and Caterina Giannetti

The role of reciprocation in the formation of social networks

Overview Reciprocation by oneself

Blogging

Empirical Analysis

Conclusions

References

Empirical Analysis - Reciprocation by oneself

VARIABLES L.Friends log(Readers) Functionality Age blog Community joined Community left Entries Posted Extroversion Engagement Inactive Constant Observations Number of user Pooled OLS 1.000*** 54.736*** 0.063** -0.000 0.595* 0.058 0.005 0.003 -0.011* 0.005 -0.005 -0.100 75,432 1,347 FE 0.932*** 48.869*** 0.756*** 0.028** 0.469* 0.067 0.005 0.008** -0.013* 0.006 -0.028*** 1.307 75,432 1,347
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SYS GMM 0.959*** 43.031* 0.285 0.106 4.261*** 1.097*** 0.035 0.050*** 0.003 -0.035 -0.963** 1.104 75,432 1,347
Alexia Gaudeul and Caterina Giannetti

The role of reciprocation in the formation of social networks

Overview Robustness

Blogging

Empirical Analysis

Conclusions

References

Empirical Analysis - Robustness

We check the robustness of our results
1

To weak identication (i.e. system-GMM, Bobba and Coviello, 2007) and instruments proliferation (i.e. Hansen J-statistics, Roodman, 2009) To structural specication (i.e. test the validity of subset of instruments, using dierence in Hansen J-statistics) By considering dierent sub-groups of blogs (i.e. small vs. large blogs and English vs. Russian-speaking)

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Alexia Gaudeul and Caterina Giannetti

Overview Interpretation

Blogging

Empirical Analysis

Conclusions

References

Empirical Analysis - Interpretation

1

Reciprocation is a signicant factor, but is quite low (25% to 50% vs. 87% in Gaudeul and Peroni, 2010) Depreciation in readership is limited, even if cease writing entries for a while. Making more entries does not increase readership, making them more engaging does. Posting comments increases readership, but only if compensated by receiving more comments as well. Joining communities indicate willingness to add friends (leaving them too...) There are little dierences between Russian and English blogs, even though both uses and users dier. Bigger blogs reciprocate readership more willingly.
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The role of reciprocation in the formation of social networks

Overview

Blogging

Empirical Analysis

Conclusions

References

Social Multipliers and Reection Eects

Empirical Analysis - Social Multipliers and Reection Eects

1

Simultaneity problem (Manski, 1993) as individuals aected by peer-group activity. However:

1

We control for at least one way in which others actions aect mine, and vice versa (reciprocation) We also are able to control for how bloggers interactions with others (comments) are determined by comments they receive. We also control for dierent peer-groups (Russian vs. English speaking blogs).

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

Social Multipliers and Reection Eects

Empirical Analysis - Social Multipliers and Reection Eects

We compute total eect of a unit increase in activity on number of readers/friends (interim and long term multipliers).
TIME 0 1 2 ... 10 ... Long-run 51.733 6.951 9.867 1.220
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Functionality Readers Friends 0.956 1.887 2.794 0.696 1.353 1.972

Posted Readers Friends 0.181 0.357 0.529 0.128 0.248 0.362

Inactive Readers Friends -0.297 -0.577 -0.839 -1.091 -2.129 -3.118

9.302

5.805

1.764

1.064

-2.421

-9.497

-1.067

-23.488

The role of reciprocation in the formation of social networks

Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

Conclusions
1

Empirics: Bloggers activity on LiveJournal follow consistent patterns. Experience, audience size or location have little eect. Methodology: Data on activity in social networks should include data on eort in searching for partners. Contribution: Better understanding of the process of social network formation + A framework for a general understanding of social media and online social networking.

Questions? Comments? Mail us at a.gaudeul@gmail.com caterina.giannetti@gmail.com

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

References I
Aristotle. The Nicomachean Ethics. Oxford University Press, ca. 350 B.C.E. (1908 translation by W. D. Ross). Matteo Bobba and Decio Coviello. Weak instruments and weak identication, in estimating the eects of education, on democracy. Economics Letters, 96(3): 301306, 2007. Dale Carnegie. How To Win Friends And Inuence People. Simon & Schuster, 1936. Michel E. de Montaigne. Essays, chapter XXVII - Of Friendship. Project Gutenberg, 1588. URL http://www.gutenberg.org/ebooks/3600. (1877 translation by C. Cotton). Josef Falkinger. Attention economies. Journal of Economic Theory, 133(1):266294, 2007. Andrea Galeotti and Sanjeev Goyal. The law of the few. American Economic Review, 100(4):14681492, 2010. Alexia Gaudeul and Chiara Peroni. Reciprocal attention and norm of reciprocity in blogging networks. Economics Bulletin, 30(3):22302248, 2010.
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Overview

Blogging

Empirical Analysis

Conclusions

References

References II
Edward L. Glaeser, David Laibson, and Bruce Sacerdote. An economic approach to social capital. The Economic Journal, 112(483):437458, 2002. Alvin W. Gouldner. The norm of reciprocity: A preliminary statement. American Sociological Review, 25(2):161178, 1960. Chun-Yao Huang, Yong-Zheng Shen, Hong-Xiang Lin, and Shin-Shin Chang. Bloggers motivations and behaviors: A model. Journal of Advertising Research, 47(4): 472484, 2007. Ravi Kumar, Jasmine Novak, and Andrew Tomkins. Structure and evolution of online social networks. In Philip S. S. Yu, Jiawei Han, and Christos Faloutsos, editors, Link Mining: Models, Algorithms, and Applications, pages 337357. Springer: New York, 2010. ISBN 978-1-4419-6515-8. Amanda Lenhart and Susannah Fox. Bloggers: A portrait of the Internets new storytellers, 2006. URL http://www.pewinternet.org/Reports/2006/Bloggers.aspx. accessed October 18, 2010.

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

References III
Charles F Manski. Identication of endogenous social eects: The reection problem. Review of Economic Studies, 60(3):53142, July 1993. Alice Marwick. LiveJournal users: Passionate, prolic and private, 2008. URL http://www.livejournalinc.com/LJ_Research_Report.pdf. accessed January 18, 2010. Kate Raynes-Goldie. Pulling sense out of todays informational chaos: LiveJournal as a site of knowledge creation and sharing. First Monday, 9(12), 2004. URL http://firstmonday.org/issues/issue9_12/raynes/index.html. Kate Raynes-Goldie and David Fono. Hyperfriends and beyond: Friendship and social norms on LiveJournal. In M. Consalvo and C. Haythornthwaite, editors, Internet Research Annual Volume 4: Selected Papers from the Association of Internet Researchers Conference. Peter Lang: New York, USA, 2006. David Roodman. A note on the theme of too many instruments. Oxford Bulletin of Economics and Statistics, 71(1):135158, 2009.

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Alexia Gaudeul and Caterina Giannetti

Overview

Blogging

Empirical Analysis

Conclusions

References

References IV
Huaxia Rui and Andrew Whinston. Social media as an innovation - the case of Twitter. University of Texas at Austin, 2010. Clay Shirky. Power laws, weblogs, and inequality, 2003. URL http://shirky.com/writings/powerlaw_weblog.html. accessed January 18, 2010. Herbert A. Simon. Designing organizations for an information-rich world. In Martin Greenberger, editor, Computers, Communication, and the Public Interest. The Johns Hopkins Press: Baltimore, MD, 1971. Technorati. State of the blogosphere 2009, 2009. URL http://technorati.com/blogging/feature/state-of-the-blogosphere-2009. accessed October 18, 2010. Lu Wei. Filter blogs vs. personal journals: Understanding the knowledge production gap on the Internet. Journal of Computer-Mediated Communication, 14(3):532558, 2009.

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