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This paper studies the effect of advertising on content differentiation on YouTube, the second-most visited website in … the world. I demonstrate that an exogenous increase in the feasible advertising quantity leads to a considerable decrease …; thus, viewers who perceive advertising as a nuisance – and therefore as an implicit price they have to pay – could easily …
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We study the incentive of an ad-funded social media platform to curb the presence of unsafe content that entails reputational risk to advertisers. We identify conditions for the platform not to moderate unsafe content and demonstrate how the optimal moderation policy depends on the risk the...
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