"Content moderation and advertising in social media platforms"

Published in the Journal of Economics & Management Strategy

Leonardo Madio (dSEA Unipd) and Martin Quinn (Rotterdam School of Management) study the incentive for an ad-funded social media platform to curb unsafe content that poses reputational risks to advertisers. They identify when the platform might not moderate such content and how moderation policies depend on advertisers' risk. The platform tends to undermoderate when advertisers and users both prefer unsafe content and overmoderate when their preferences conflict. They also explore the impact of mandated content moderation, taxes on social media activity, and platform competition on moderation strategies.

Read the full article here