Template-Type: ReDIF-Paper 1.0 Title: Moderating Content-Hosting Platforms Author-Name: Robin Ng Author-Email: robin@robinng.com Author-Name: Greg Taylor Author-Email: greg.taylor@oii.ox.ac.uk Classification-JEL: D83, L82, L86 Keywords: user-generated content, content moderation, creator economy, media platforms, misinformation Abstract: We study how content moderation facilitates communication on online platforms. A sender transmits information to a receiver, exerting effort to signal their truthfulness. Communication fails without moderation because the effort required is prohibitive. Moderation resolves this problem by making effort a more powerful signal of veracity. However, moderation crowds-out sender effort, decreasing content quality on the platform. A socially optimal or profit-maximizing policy may therefore involve limited moderation. We study the choice between being a platform or broadcaster, how moderation influences competition for attention, and the effects of misinformation actors, AI-generated content, and moderator errors on the sustainability of communication. Note: Length: 45 Creation-Date: 2025-08 Revision-Date: 2025-09 File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp698 File-Format: application/pdf Handle: RePEc:bon:boncrc:CRCTR224_2025_698v2