Platform Competition with User-Generated Content

Fuente: arXiv
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Main Author: Zhang, Bohan
Format: Preprint
Published: 2025
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author Zhang, Bohan
author_facet Zhang, Bohan
contents This paper develops a theoretical model of platform competition where user-generated content (UGC) quality arises endogenously from the composition of the user base. Users differ in their relative preferences for content quality and network size, and platforms compete by choosing advertising intensity, which affects user utility through perceived quality. We characterize equilibrium platform choice, identifying conditions under which equilibria are stable. The model captures how platforms' strategic decisions shape user allocation and market outcomes, including coexistence and dominance scenarios. We consider two types of equilibria in advertising levels: Nash equilibria and Stackelberg equilibria, and discuss the industry and policy implications of our results.
format Preprint
id arxiv_https___arxiv_org_abs_2512_08876
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Platform Competition with User-Generated Content
Zhang, Bohan
Theoretical Economics
This paper develops a theoretical model of platform competition where user-generated content (UGC) quality arises endogenously from the composition of the user base. Users differ in their relative preferences for content quality and network size, and platforms compete by choosing advertising intensity, which affects user utility through perceived quality. We characterize equilibrium platform choice, identifying conditions under which equilibria are stable. The model captures how platforms' strategic decisions shape user allocation and market outcomes, including coexistence and dominance scenarios. We consider two types of equilibria in advertising levels: Nash equilibria and Stackelberg equilibria, and discuss the industry and policy implications of our results.
title Platform Competition with User-Generated Content
topic Theoretical Economics
url https://arxiv.org/abs/2512.08876