Influencer Networks

59 Pages Posted: 29 Mar 2024 Last revised: 27 Apr 2024

See all articles by Yanlin Chen

Yanlin Chen

Nanjing Audit University

Xueheng Li

Lingnan College, Sun Yat-sen University

Tianle Song

Wenlan School of Business, Zhongnan University of Economics and Law

Date Written: February 28, 2024

Abstract

This paper develops a model to examine the formation of influencer networks in user-generated content markets. Unlike previous research, we find that every strict equilibrium network exhibits a nested, upward-linking structure where multiple levels of influencers can coexist. Moreover, across a broad range of parameters, all payoff-dominant strict equilibria conform to the law of the vital few: regardless of the population size, a small but significant group of players provides all content. For sufficiently large populations, a single nested upward-linking network connecting all players can emerge, despite potentially polarized tastes over content categories.

Keywords: User-generated content networks, network formation, influencer economy, the law of the vital few

JEL Classification: D83, D85, Z13

Suggested Citation

Chen, Yanlin and Li, Xueheng and Song, Tianle, Influencer Networks (February 28, 2024). Available at SSRN: https://ssrn.com/abstract=4744210 or http://dx.doi.org/10.2139/ssrn.4744210

Yanlin Chen

Nanjing Audit University ( email )

86 Yushan West Road
Nanjing, Jiangsu 210017
China

Xueheng Li (Contact Author)

Lingnan College, Sun Yat-sen University ( email )

GuangZhou, GuangDong
China

Tianle Song

Wenlan School of Business, Zhongnan University of Economics and Law ( email )

No. 182 Nanhu Avenue
Wuhan, Hubei 430073
China

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