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Excessive Content Moderation

Author

Listed:
  • Ivan Rendo

    (Toulouse School of Economics, University of Toulouse Capitole)

Abstract

Unregulated online platforms often host extreme and socially undesirable content. As mainstream platforms tighten moderation, some users shift to unmoderated alternatives, leading to a leakage of extreme content. I develop a duopoly model where an ad-funded mainstream platform competes with an unmoderated fringe. Heterogeneous users choose platforms and create content reflecting their views. The mainstream platform trades off attracting fringe users with making content safer for advertisers. With strong network effects, the socially optimal moderation is more lenient than the profit-maximizing one. Therefore, regulation mandating stricter moderation may backfire by increasing overall content unsafety.

Suggested Citation

  • Ivan Rendo, 2025. "Excessive Content Moderation," Working Papers 25-02, NET Institute.
    • Handle: RePEc:net:wpaper:2502
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    File URL: http://www.netinst.org/Rendo_25-02.pdf
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    References listed on IDEAS

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    1. Beknazar-Yuzbashev, George & Jiménez Durán, Rafael & McCrosky, Jesse & Stalinski, Mateusz, 2025. "Toxic content and user engagement on social media: Evidence from a field experiment," Working Papers 359, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
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    Keywords

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    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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