Showing posts with label Approve. Show all posts
Showing posts with label Approve. Show all posts

Thursday, August 8, 2013

‘Like’ This Article Online? Your Friends Will Probably Approve, Too, Scientists Say

But surprisingly, an unfair negative reaction will not spur others to dislike the article. Instead, a thumbs-down view will soon be counteracted by thumbs up from other readers.

Those are the implications of new research looking at the behavior of thousands of people reading online comments, scientists reported Friday in the journal Science. A positive nudge, they said, can set off a bandwagon of approval.

“Hype can work,” said one of the researchers, Sinan K. Aral, a professor of information technology and marketing at the Massachusetts Institute of Technology, “and feed on itself as well.”

If people tend to herd together on popular opinions, that could call into question the reliability of “wisdom of the crowd” ratings on Web sites like Yelp or Amazon and perhaps provide marketers with hints on how to bring positive attention to their products.

“This is certainly a provocative study,” said Matthew O. Jackson, a professor of economics at Stanford who was not involved with the research. “It raises a lot of questions we need to answer.”

Besides Dr. Aral (who is also a scholar in residence at The New York Times research and development laboratory, working on unrelated projects), the researchers are from Hebrew University in Jerusalem and New York University.

They were interested in answering a question that long predates the iPhone and Justin Bieber: Is something popular because it is actually good, or is it popular just because it is popular?

To help answer that question, the researchers devised an experiment in which they could manipulate a small corner of the Internet: reader comments.

They collaborated with an unnamed Web site, the company did not want its involvement disclosed, on which users submit links to news articles. Readers can then comment on the articles, and they can also give up or down votes on individual comments. Each comment receives a rating calculated by subtracting negative votes from positive ones.

The experiment performed a subtle, random change on the ratings of comments submitted on the site over five months: right after each comment was made, it was given an arbitrary up or down vote, or — for a control group — left alone. Reflecting a tendency among the site’s users to provide positive feedback, about twice as many of these arbitrary initial votes were positive: 4,049 to 1,942.

The first person reading the comment was 32 percent more likely to give it an up vote if it had been already given a fake positive score. There was no change in the likelihood of subsequent negative votes. Over time, the comments with the artificial initial up vote ended with scores 25 percent higher than those in the control group.

“That is a significant change,” Dr. Aral said. “We saw how these very small signals of social influence snowballed into behaviors like herding.”

Meanwhile, comments that received an initial negative vote ended up with scores indistinguishable from those in the control group.

The Web site allows users to say whether they like or dislike other users, and the researchers found that a commenter’s friends were likely to correct the negative score while enemies did not find it worth their time to knock down a fake up vote.

The distortion of ratings through herding is not a novel concern. Reddit, a social news site that said it was not the one that participated in the study, similarly allows readers to vote comments up or down, but it also allows its moderators to hide those ratings for a certain amount of time. “Now a comment will more likely be voted on based on its merit and appeal to each user, rather than having its public perception influence its votes,” it explained when it unveiled the feature in April.

Duncan J. Watts, a scientist at Microsoft Research, said the overall findings fit with “cumulative advantage,” the idea that something that starts slightly more popular will build upon that popularity until it is far ahead of its competitors — and conversely, something that does not catch on will usually fade away whether or not it is good.

He cited the new crime novel “The Cuckoo’s Calling,” by Robert Galbraith, which received good reviews but tiny sales when it was released in April. When it was revealed that Galbraith was a pseudonym for J. K. Rowling, the book suddenly had the cumulative advantage conferred by the Harry Potter series and jumped to the top of best-seller lists.

“The biggest obstacle to success is just being noticed,” Dr. Watts said.

But opinions do not invariably follow popularity. In an earlier experiment by Dr. Watts, people listened to a list of songs ranked by popularity and were asked to rate them. But for some, the list was inverted — what they were told was the most popular song was actually the least popular.

The incorrect list did affect how listeners rated the songs — the good songs never achieved the same popularity as among listeners who were given the correct list, and the bad songs did better than they would have otherwise.

“But we also found, in a result that was somewhat consistent with the result here, that sometimes the songs were able to recover their sort of real ranking in spite of the manipulation,” Dr. Watts said. The listeners, he said, “in effect noticed that the song was better or worse than we had made it seem.”

Friday, April 26, 2013

MetroPCS Shareholders Approve Merger With T-Mobile USA

The deal, first announced in early October 2012, had looked set for defeat until earlier this month, when Deutsche Telekom gave in to pressure to reduce the combined company's debt.

Activist shareholder P. Schoenfeld Asset Management had led a proxy battle against the original deal, while the biggest MetroPCS shareholder, Paulson & Co, had also threatened to vote against it. Both investors have said they were pleased with the improved terms.

But some shareholders said they were happy to see MetroPCS combine with a larger player, regardless of the details.

"It was significant that they sweetened the offer, but I would have voted in favor of the previous terms," said Robert Capps, a Dallas-area shareholder and telecom executive.

Of the MetroPCS shares that were voted, the company said about 93 percent were cast in favor of the main proposal related to the deal.

MetroPCS shares were down 5 cents at $11.64 in afternoon trading.

Shareholders will receive $4.06 per share in cash plus stock equivalent to 26 percent of the combined company in the reverse merger and Deutsche Telekom will own the rest.

Deutsche Telekom said the combined company will be called T-Mobile US and trade on the New York Stock Exchange under the symbol "TMUS." The deal is expected to close at the end of this month.

BETTER POSITION AGAINST RIVALS

MetroPCS, a provider to cost-conscious consumers who pay for calls in advance, and T-Mobile USA are looking to combine their spectrum assets to compete better with bigger rivals.

By tying up with MetroPCS, Deutsche Telekom hopes to provide T-Mobile USA with the spectrum to build a network capable of handling the vast data volumes that U.S. consumers and businesses use on smartphones and tablets.

Some Deutsche Telekom shareholders, however, worry that even a successful merger might not be enough for T-Mobile USA to catch up with rivals.

T-Mobile USA lost 515,000 contract customers in the fourth quarter of 2012, although it recently announced smaller losses of 199,000 contract customers in the first quarter.

The company recently overhauled its price structure to eliminate most phone subsidies and started selling Apple's iPhone for the first time. But its network quality lags Verizon Communications Inc and AT&T Inc, which have invested massively in fourth-generation mobile technology in recent years.

The United States is key to the investment case for Deutsche Telekom. It earned 26 percent of group revenue there last year and 20 percent of its operating profit.

The German group has long searched for a way to help T-Mobile USA gain critical mass to compete. In 2011, antitrust regulators blocked a $39 billion deal bid for AT&T to buy T-Mobile USA.

The merger also paves the way for what some investors and bankers think Deutsche Telekom really wants - to ultimately reduce its exposure to a highly competitive market.

For now, Deutsche Telekom has committed to holding its shares in the new combined entity for 18 months.

(Additional reporting by Sinead Carew in New York, Harro ten Wolde in Frankfurt and Leila Abboud in Paris; Editing by Gerald E. McCormick, Bernadette Baum and Andre Grenon)