Envy on Facebook: a hidden threat to users’ life satisfaction?

The wealth of social information presented on Facebook is astound-ing. While these affordances allow users to keep up-to-date, they also produce a basis for social comparison and envy on an unprecedented scale. Even though envy may endanger users’ life satisfaction and lead to platform avoidance, no study exists uncovering this dynamics. To close this gap, we build on responses of 584 Facebook users collected as part of two independent studies. In study 1, we explore the scale, scope, and nature of envy incidents triggered by Face-book. In study 2, the role of envy feelings is examined as a mediator between intensity of passive following on Facebook and users’ life satisfaction. Con-firming full mediation, we demonstrate that passive following exacerbates envy feelings, which decrease life satisfaction. From a provider’s perspective, our findings signal that users frequently perceive Facebook as a stressful environ-ment, which may, in the long-run, endanger platform sustainability.

Online Reputation Systems and Cumulative Advantage

The study of online reputation systems and their importance for promoting trust and cooperation and, therefore, the smooth functioning of online markets has received considerable attention over the last few years. In the first part of our talk we will try to give a brief overview of the existing theoretical and empirical work in this field, summarize the main findings from this research and identify open questions where results are either controversial or do not yet exist. The second part of our talk will focus on one of these issues that deserve further research, namely the relation between online reputation systems and processes of "cumulative advantage." Cumulative advantage is the mechanism where a favorable relative position of having a good reputation becomes a resource for further relative gains. The process leads to increased status inequality and a heavily skewed distribution of number of feedbacks, i.e. the ties in the reputation network. We present empirical evidence for direct and indirect reputation effects on the micro level of an auction reputation system and discuss the distributional consequences for the market level.