Short answer
Designers should consider how platform mechanics, cost structures, and reward systems can be subtly adjusted to attract and retain higher-quality complementors, even if it means a larger influx of lower-quality participants initially.
- Field
- Innovation & Markets
- Source
- National Bureau of Economic Research (2018)
- Method
- Empirical analysis of platform data
- Evidence
- Strong effect
Subtle adjustments to platform design, particularly those impacting the cost of entry and non-monetary rewards, can strategically shift the balance from amateur to professional complementors, ultimately leading to higher quality outputs. This innovation & markets research insight is drawn from a 2018 study published in National Bureau of Economic Research. Using Empirical analysis of platform data, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers should consider how platform mechanics, cost structures, and reward systems can be subtly adjusted to attract and retain higher-quality complementors, even if it means a larger influx of lower-quality participants initially.
Platform Design Tweaks Can Elevate Product Quality by Shifting Complementor Mix
Subtle adjustments to platform design, particularly those impacting the cost of entry and non-monetary rewards, can strategically shift the balance from amateur to professional complementors, ultimately leading to higher quality outputs.
National Bureau of Economic Research · 2018
Key Findings
- 01Small, incremental changes in platform design related to minimum development costs and non-pecuniary payoffs can cause the market to 'bottom out' for amateurs.
- 02A 'bottomed-out' market attracts a large number of low-quality developers who remain active on the platform.
- 03Amateur developers do not appear to crowd out the development activity of top-tier developers.
- 04The 'bottoming-out' phenomenon is associated with a significant increase in the generation of high-quality products.
Application
Design takeaway
Designers should consider how platform mechanics, cost structures, and reward systems can be subtly adjusted to attract and retain higher-quality complementors, even if it means a larger influx of lower-quality participants initially.
How to apply
When designing or iterating on a platform, analyze the current complementor mix and identify key design levers (e.g., onboarding friction, fee structures, recognition systems) that could be adjusted to favor more professional or higher-quality contributions.
Project actions
- 01Consider how your design choices might attract different types of users or contributors.
- 02Think about the economic and psychological factors that influence user engagement and contribution quality.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides empirical evidence from a real-world platform ecosystem.
- +Highlights the nuanced relationship between design, user behavior, and market outcomes.
Limitations
The complexity of real-world platforms makes it difficult to isolate the exact impact of specific design changes. Measuring 'quality' can be subjective.
Reliability & validity
The study's reliance on observational data from a specific market may limit generalizability. The definition and measurement of 'quality' are critical for validity. Replication across different platform types would enhance reliability.
Think critically
To what extent can platform owners truly 'control' the quality of complementor contributions through design, or are external market forces more dominant?
Design Principles
"Platform design should strategically manage the cost and reward landscape to attract and cultivate high-value complementors, thereby enhancing overall product quality and market innovation."
Understanding how platform design influences the type of complementors attracted is crucial for fostering innovation and market growth. Designers and product managers can leverage these insights to cultivate environments that attract and retain high-quality contributors, thereby enhancing the overall value and success of their platforms.
What This Means for Your Design
Making small changes to how easy or rewarding it is to build things on a platform can change who builds them, and sometimes this leads to better quality stuff overall, even if lots of people are still trying.
How to use in your project
- 1.Use this research to justify design decisions aimed at improving the quality of user-generated content or third-party integrations on a platform.
Add to My Project
Quick Cite
Paragraph starter
The research by Boudreau (2018) suggests that subtle platform design modifications, particularly those affecting the cost of participation and non-monetary incentives, can strategically shift the complementor base from amateurs to professionals. This shift, while potentially attracting a large volume of lower-quality contributors, has been shown to correlate with a significant increase in the generation of highest-quality products, indicating that platform owners can actively curate their ecosystem for improved output quality through thoughtful design.
Source
National Bureau of Economic Research
Amateurs Crowds & Professional Entrepreneurs as Platform Complementors
journal · 2018
View sourceQuestions About This Research
- What does the research say about platform design tweaks can elevate product quality by shifting complementor mix?
- Designers should consider how platform mechanics, cost structures, and reward systems can be subtly adjusted to attract and retain higher-quality complementors, even if it means a larger influx of lower-quality participants initially. Evidence: National Bureau of Economic Research (2018).
- Why does "Platform Design Tweaks Can Elevate Product Quality by Shifting Complementor Mix" matter for design?
- Understanding how platform design influences the type of complementors attracted is crucial for fostering innovation and market growth. Designers and product managers can leverage these insights to cultivate environments that attract and retain high-quality contributors, thereby enhancing the overall value and success of their platforms.
- How can designers apply this research?
- Designers should consider how platform mechanics, cost structures, and reward systems can be subtly adjusted to attract and retain higher-quality complementors, even if it means a larger influx of lower-quality participants initially.
- What were the main findings?
- Small, incremental changes in platform design related to minimum development costs and non-pecuniary payoffs can cause the market to 'bottom out' for amateurs.. A 'bottomed-out' market attracts a large number of low-quality developers who remain active on the platform.. Amateur developers do not appear to crowd out the development activity of top-tier developers.. The 'bottoming-out' phenomenon is associated with a significant increase in the generation of high-quality products.
- What research method was used?
- Empirical analysis of platform data.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2018 journal from National Bureau of Economic Research.
- What should I do differently in my next project?
- When designing or iterating on a platform, analyze the current complementor mix and identify key design levers (e.g., onboarding friction, fee structures, recognition systems) that could be adjusted to favor more professional or higher-quality contributions.
- What are the limitations?
- The study focuses on the mobile app market, and findings may not directly translate to all platform types. The definition of 'quality' and 'activity' could be subject to interpretation.