Engineering Optimal Network Effects via Social Media Features and Seeding in Markets for Digital Goods and Services

Firms nowadays are increasingly proactive in trying to strategically capitalize on consumer networks and social interactions. In this paper, we complement an emerging body of research on the engineering of word-of-mouth effects by exploring a different angle through which firms can strategically exploit the value-generation potential of the user network. Namely, we consider how software firms should optimize the strength of network effects at...