Fostering or Hindering Allegiance Cultivation: An Economic Analysis of Fan Loyalty on User-Generated Content Platforms

The loyalty of fan communities to content creators significantly impacts stakeholders on user-generated content (UGC) platforms. Notably, major UGC platforms exhibit varying stances on creators’ cultivation of fan loyalty. For instance, Douyin (the Chinese version of TikTok) hinders creators from building robust fan followings, while Kuaishou (another major UGC platform in China) takes active measures to encourage and support creators in cultivating fan loyalty on its platform. This stark contrast has sparked an ongoing debate about the role of UGC platforms in the cultivation of fan loyalty. In this paper, using a game-theoretic model, we explore the optimal strategies embraced by platforms in managing creators’ cultivation of fan loyalty and their implications for key stakeholders. Our study generates meaningful implications by providing guidelines for UGC platforms to strategically manage creators’ cultivation of fan loyalty and for creators to balance their efforts between cultivating fan loyalty and enhancing content quality.