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Video‐sharing platform's optimal monetary incentive decisions considering motivation crowding‐out effect

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  • Xueyu Liu
  • Shue Mei
  • Weijun Zhong

Abstract

Considering the motivation crowding‐out effect of monetary incentives, a game‐theoretic model is built to examine a video‐sharing platform's optimal incentive decisions. Results show that offering monetary incentives to contributors does not ensure an improvement in video quality nor an increase in the platform's profit. We identify four ideal market conditions for the platform to offer monetary incentives. We find that though the motivation crowding‐out effect seems to undermine the effectiveness of monetary incentives, the ideal market conditions for offering monetary incentives do not always require this effect to be very weak; sometimes it even has to be medium.

Suggested Citation

  • Xueyu Liu & Shue Mei & Weijun Zhong, 2023. "Video‐sharing platform's optimal monetary incentive decisions considering motivation crowding‐out effect," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 371-387, January.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:1:p:371-387
    DOI: 10.1002/mde.3687
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