2025/09/02 by Haiqing Zhu, Zhu, Haiqing, Lexing Xie +3
Business, Management and Accounting · Decision Sciences · #Computer Science and Game Theory (cs.GT) #Consumer Market Behavior and Pricing #Digital Platforms and Economics #FOS: Computer and information sciences #Game Theory and Applications #Machine Learning (cs.LG)
paper · pdf · doi:10.48550/arxiv.2509.01953
openalex publication_date 2025/09/02 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
The prevalence of low-quality content on online platforms is often attributed to the absence of meaningful entry requirements. This motivates us to investigate whether implicit or explicit entry barriers, alongside appropriate reward mechanisms, can enhance content quality. We present the first game-theoretic analysis of two distinct types of entry barriers in online content platforms. The first, a structural barrier, emerges from the collective behaviour of incumbent content providers which disadvantages new entrants. We show that both rank-order and proportional-share reward mechanisms induce such a structural barrier at Nash equilibrium. The second, a strategic barrier, involves the platform proactively imposing entry fees to discourage participation from low-quality contributors. We consider a scheme in which the platform redirects some or all of the entry fees into the reward pool. We formally demonstrate that this approach can improve overall content quality. Our findings establish a theoretical foundation for designing reward mechanisms coupled with entry fees to promote higher-quality content and support healthier online ecosystems.