Socialize Less Pay More: The Link Between Virtual Network Embeddedness and User Contributions

Abstract

This study examines the impact of network structure on two important business outcomes of the PWYW (Pay-What-You-Want) live streaming platform, namely live chat, and tipping. Specifically, we investigate the role of network embeddedness on these outcomes by analyzing 9,524,420 transaction-broadcast records from 1,334,999 users of a leading PWYW live streaming platform in South Korea. Our analysis sheds light on how user contributions in the form of tipping and live chat change because of the extent of content consumption overlaps. Our preliminary results suggest that higher levels of network embeddedness lead to increased tipping and decreased live chatting. These findings have important implications for platform designers and streamers, as they highlight the need to consider consumption patterns across users in the design of PWYW live streaming platforms. © 2023 29th Annual Americas Conference on Information Systems, AMCIS 2023. All rights reserved.