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Platform as a Social Contract: An Analytical Framework for Studying Social Dynamics in Online Platforms

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Collaborative Value Co-creation in the Platform Economy

Part of the book series: Translational Systems Sciences ((TSS,volume 11))

Abstract

In addition to formal terms of service and contracts between platform owners, users, and other stakeholders, there can be seen an implicit social contract taking place in online platforms, and influencing the social dynamics, such as trust, expectations, and perceived social justice, taking place within platforms, and driving their growth and success in the background. This paper examines the nature of that social contract, to better understand the complex social dynamics taking place in online platforms. To accomplish that objective, we draw from classic Enlightenment thinkers, e.g., Rousseau, Locke, and Hobbes, to analyze key aspects of social contracts, which we define as the alignment of stakeholder interests, stakeholder support, economic and social justice, and transparency of expectations. As our main contribution, we develop a conceptual framework for the analysis of platforms based on social contract theory, the Platforms as a Social Contract framework. The applicability of the framework is illustrated through a case analysis of YouTube, a popular online content platform. The rich understanding provided by the social contract perspective, embodied in our framework, entails many potential advantages to platform owners, including understanding user motivations and reactions so that effective platform governance with maintaining a sustainable solution to the chicken-and-egg problem becomes possible. While individual platforms may come and go, each faces the same fundamental social dynamics that can be explained and understood by applying the social contract framework presented in this research. This research shows how the framework can be used for analysis of online platforms, as well as suggests future research avenues for developing deeper understanding of platforms as a social contract.

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Notes

  1. 1.

    In addition to two-sided markets, which is a concept rooted in economics, other concepts referring to platforms, although more rarely used, include multisided platforms (Hagiu and Wright 2015) and multisided markets (Seamans and Zhu 2013).

  2. 2.

    The problem is defined as follows: In the absence of others, users and other stakeholders lack the incentive to join or use the platform (see, e.g., Rochet and Tirole 2003; Salminen 2014).

  3. 3.

    For clarity, we point out that Enlightenment philosophers were obviously influenced by earlier thinkers, dating back to Ancient Greek (e.g., Plato’s teachings on the role of the state as a governing body) and Ancient Rome (e.g., the notion of contract which was central in the Roman society).

  4. 4.

    “Conseil d’Etat,” a nonexecutive consultative body providing guidance or advice to the state in economic and social matters among other topics

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Correspondence to Valtteri Kaartemo .

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Salminen, J., Gach, N., Kaartemo, V. (2018). Platform as a Social Contract: An Analytical Framework for Studying Social Dynamics in Online Platforms. In: Smedlund, A., Lindblom, A., Mitronen, L. (eds) Collaborative Value Co-creation in the Platform Economy. Translational Systems Sciences, vol 11. Springer, Singapore. https://doi.org/10.1007/978-981-10-8956-5_3

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