School of Economics

Invites you to a

School seminar presented by

Paul Raschky

(Monash University)

Friends, Key Players and Product Adoption

Co-authors:

(Rhys Murrian – Monash University)

(Klaus Ackermann – Monash University)

Thursday 19 October 2023

11.00pm – 12.30pm

Seminar Room 650
A02 Social Sciences Building

Camperdown Campus
The University of Sydney NSW 2006

This paper empirically investigates the role of social networks in the adoption of experience goods, characterized by uncertain quality prior to consumption. In these markets, consumers often rely on information from friends who have previously purchased the good and share information about the quality of the good through word-of-mouth. We use granular data on individual networks and product ownership by users from the world’s largest video game platform to analyse if a user’s friendship network influences their decision to purchase games. Peer effects strongly increase the demand for the game with the effect being stronger if the friend who purchased the game is an old friend compared to a more central, key player. Intriguingly, the utility that the individual receives from purchasing the game is higher if the purchase was initially driven by a key player compared to an old friend.

For further information contact: School seminar series coordinators
Alastair Fraser (alastair.fraser@sydney.edu.au) & Brendan Beare (brendan.beare@sydney.edu.au)

For all upcoming seminars in School of Economics see Our events and Calendar