Using a Reward System to Promote Access and Engagement on a Social Networking Service

Abstract

     The value of social network service is a function of the number of its users. As the number of users increases, it becomes more attractive. Newer SNSs are often faced with the challenge of getting this ball rolling because they typically do not have very many users at the outset. The present paper presents a point system designed to encourage users' active involvement with an SNS and demonstrates its effectiveness with mathematical modeling. We also tested our ideas with experiments in an SNS we developed. Our point system gives points to each user according to the level of their individual contribution, which is then converted into monetary rewards using an exchange rate set by the collective level of activity in the SNS. Our panel data analysis of experiment results reveals that the point system has significant and long lasting impacts on users' behavior that are sustained after the conclusion of experiments.