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| Main Authors: | , |
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| Format: | Preprint |
| Published: |
2024
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2410.13090 |
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| _version_ | 1866912231135903744 |
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| author | Zhang, Yukun Dong, Qi |
| author_facet | Zhang, Yukun Dong, Qi |
| contents | We develop a comprehensive theoretical framework to analyze live streaming platforms as two-sided markets, focusing on the head effect where a small subset of elite streamers disproportionately attracts viewer attention. By constructing both static and dynamic models, we capture the interplay between network effects, content quality investments, and platform policies-such as commission structures and traffic allocation algorithms-that drive traffic concentration. Our welfare analysis demonstrates that although short-term consumer utility may benefit from concentrated viewership, long-term content diversity and overall social welfare are adversely impacted. Extensive simulations further validate our models and show that targeted policy interventions can rebalance viewer distribution and mitigate winner-takes-all dynamics. These findings offer actionable insights for platform designers and regulators in the digital economy. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2410_13090 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Exploring the Head Effect in Live Streaming Platforms: A Two-Sided Market and Welfare Analysis Zhang, Yukun Dong, Qi Computers and Society We develop a comprehensive theoretical framework to analyze live streaming platforms as two-sided markets, focusing on the head effect where a small subset of elite streamers disproportionately attracts viewer attention. By constructing both static and dynamic models, we capture the interplay between network effects, content quality investments, and platform policies-such as commission structures and traffic allocation algorithms-that drive traffic concentration. Our welfare analysis demonstrates that although short-term consumer utility may benefit from concentrated viewership, long-term content diversity and overall social welfare are adversely impacted. Extensive simulations further validate our models and show that targeted policy interventions can rebalance viewer distribution and mitigate winner-takes-all dynamics. These findings offer actionable insights for platform designers and regulators in the digital economy. |
| title | Exploring the Head Effect in Live Streaming Platforms: A Two-Sided Market and Welfare Analysis |
| topic | Computers and Society |
| url | https://arxiv.org/abs/2410.13090 |