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Paper Number
2046
Paper Type
Completed
Description
Content creation costs pose a threat for online marketplaces aiming to attract new users. In response, platform managers devise new policies to subsidize these costs for content creators. In this study, we analyze data from a leading NFT marketplace to examine the impact of a lazy minting policy, which enables content creation without upfront fees, on created content, and engagement with that content. On the creation side, we observe a volume-effort trade-off, with creators producing more work for the market but exerting less effort during creation. On the engagement side, we note a decrease in engagement, particularly affecting creators with higher engagement levels prior to the policy change. We explore the mechanism driving this reduction and find that effort and attention play crucial roles, while a larger follower count does not shield creators from decreased engagement. Finally, we discuss our contributions to the literature and its implications for platform managers.
Recommended Citation
Kanellopoulos, Ioannis Filippos; Gutt, Dominik; Tunç, Murat; and Li, Ting, "How Free Market Entry Affects Creation and Engagement: Evidence from Non-Fungible Tokens" (2023). ICIS 2023 Proceedings. 4.
https://aisel.aisnet.org/icis2023/emobilecomm/emobilecomm/4
How Free Market Entry Affects Creation and Engagement: Evidence from Non-Fungible Tokens
Content creation costs pose a threat for online marketplaces aiming to attract new users. In response, platform managers devise new policies to subsidize these costs for content creators. In this study, we analyze data from a leading NFT marketplace to examine the impact of a lazy minting policy, which enables content creation without upfront fees, on created content, and engagement with that content. On the creation side, we observe a volume-effort trade-off, with creators producing more work for the market but exerting less effort during creation. On the engagement side, we note a decrease in engagement, particularly affecting creators with higher engagement levels prior to the policy change. We explore the mechanism driving this reduction and find that effort and attention play crucial roles, while a larger follower count does not shield creators from decreased engagement. Finally, we discuss our contributions to the literature and its implications for platform managers.
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22-Digital