Abstract

Traditional platform loyalty models rely on "hidden value" and consumer myopia. However, the rise of Information Intermediaries (IIs)—such as Reddit churning communities and algorithmic valuation platforms—has catalyzed Collective Consumer Learning, allowing users to systematically "optimize" rewards and erode implicit subsidies. This phenomenon creates an "Optimization Backfire," leading to a solvency crisis where the marginal cost of reward distribution exceeds the revenue generated from consumer engagement. To address this, platforms are shifting away from frictionless efficiency toward a more defensive architecture.

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