Paper Type
Short
Paper Number
PACIS2025-1322
Description
Many content platforms offer monetary rewards to high-value creators with significant audience engagement. Recently, some platforms have extended these reward strategies to incentivize low-value creators. This study develops a game-theoretic model to analyze how extended reward strategies influence creators’ platform choices and whether competing platforms should offer rewards to low-value creators. We find that under different reward strategies, low-value creators will adjust their participation decisions, which can either benefit or harm existing high-value creators’ profits depending on platform differentiation, content substitutability, and the value gap between creators. Additionally, platforms are more likely to extend rewards if low-value creators generate high returns but are less inclined to do so if their contribution is minimal. When platform differentiation is low and low-value creators generate moderate returns, a differentiated reward strategy is preferred.
Recommended Citation
Hu, Ruomeng; MA, DAN; and Feng, Nan, "Reward Strategies on Competing Content Platforms" (2025). PACIS 2025 Proceedings. 4.
https://aisel.aisnet.org/pacis2025/dig_plat/di/4
Reward Strategies on Competing Content Platforms
Many content platforms offer monetary rewards to high-value creators with significant audience engagement. Recently, some platforms have extended these reward strategies to incentivize low-value creators. This study develops a game-theoretic model to analyze how extended reward strategies influence creators’ platform choices and whether competing platforms should offer rewards to low-value creators. We find that under different reward strategies, low-value creators will adjust their participation decisions, which can either benefit or harm existing high-value creators’ profits depending on platform differentiation, content substitutability, and the value gap between creators. Additionally, platforms are more likely to extend rewards if low-value creators generate high returns but are less inclined to do so if their contribution is minimal. When platform differentiation is low and low-value creators generate moderate returns, a differentiated reward strategy is preferred.
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