By the People and for the People: the Double-edged Effects of Platform User Mobilization on Public Policies

Abstract

Constituency mobilization is a widely prevalent corporate political strategy, yet we lack systematic evidence on the scope of its effectiveness. One emerging form of constituency mobilization is user mobilization, wherein a company focuses on rallying political support among its users. This approach differs from traditional lobbying, which relies on tightly controlled insider strategies to exert influence over lawmakers. In our study of user mobilization by platform-based companies in the U.S. ridesharing industry between 2012 and 2019, we discovered that corporate user mobilization served as a double-edged sword in that it was associated not only with an increased likelihood of platform legalization but also with heightened levels of regulatory stringency governing these platforms. We propose that the effectiveness of user mobilization hinges on the alignment of interests between business sponsors and users. Additionally, our findings invite further attention into how user mobilization may lead to unintended regulatory stringency through four potential mechanisms: increasing politicians’ attention, enhancing issue salience, political compromise, and/or triggering users to go rogue and deviate from the sponsor’s intended message.

Keywords: user mobilization, corporate political activity, digital platforms

JEL Classification: L, M