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Moderating Content-Hosting Platforms

Author

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  • Robin Ng
  • Greg Taylor

Abstract

We study how content moderation facilitates communication on online platforms. A sender transmits information to a receiver, exerting effort to signal their truthfulness. Communication fails without moderation because the effort required is prohibitive. Moderation resolves this problem by making effort a more powerful signal of veracity. However, moderation crowds-out sender effort, decreasing content quality on the platform. A socially optimal or profit-maximizing policy may therefore involve limited moderation. We study the choice between being a platform or broadcaster, how moderation influences competition for attention, and the effects of misinformation actors, AI-generated content, and moderator errors on the sustainability of communication.

Suggested Citation

  • Robin Ng & Greg Taylor, 2025. "Moderating Content-Hosting Platforms," CRC TR 224 Discussion Paper Series crctr224_2025_698, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2025_698
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp698
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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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