659 / 2024-04-30 17:42:30

Fan Cultivation and Monetization with Network Effects: Competing Influencers and Collaborating Brands

influencer,network effects

We investigate fan cultivation and monetization with network effects for competing influencers. Influencers are asymmetric in content creation ability, and each influencer cooperates with a brand. They act as marketplaces and monetize their fame by charging commission fees for selling the cooperating brand’s products to consumers. Influencers compete for fans by adjusting content quality in the fan-cultivation stage, and brands determine product prices in the monetization stage. We study myopic influencers caring for short-term sales revenue and farsighted influencers incorporating long-term benefits from consumer surplus.