Information Strategy in Platform Competition

Abstract

Digital platforms face increasingly intense competition, making the development of effective information strategies to gain competitive advantage a critical challenge. We develop a novel competition-based information value framework to examine how competitive dynamics influence the effectiveness of different information cues (factual, emotional, and attractiveness-based) in platform environments. Grounded in the Ability-Motivation-Opportunity (AMO) framework, we theorize that in competitive environments, factual cues negatively impact performance, while emotional and attractiveness cues generate positive effects. As competition intensifies, the influence of factual and emotional cues diminishes, while the impact of attractiveness cues strengthens; conversely, in non-competitive environments, factual cues enhance performance, whereas emotional cues exhibit inhibitory effects. Empirical analysis of 1.4 million projects from online crowdfunding platform supports our hypotheses. This framework advances understanding of how platform competition shapes optimal information strategies while providing practical insights for platform managers and participants to optimize managerial decision-making processes.