Policy Design for Two-sided Platforms
with Participation Dynamics
When viewers and creators come and go depending on what the platform recommends, how should it recommend?
Haruka Kiyohara, Fan Yao, Sarah Dean · ICML 2025
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A platform between two crowds
Viewers want good content. Providers want to be seen.
Examples: video streaming, e-commerce, job matching. The platform’s goal is total viewer satisfaction (its social welfare).
Both crowds grow or shrink, and feed each other
A bigger pool of providers means better content for viewers, and more viewers mean more exposure for providers.
It also runs in reverse: providers with little exposure leave, and viewers get worse picks.
Earlier models kept one side fixed. Here both move, and the paper proves the dynamics settle at a stable point when populations adjust gradually.
The default: be greedy for today
Greedy matches each viewer group with what looks best right now, so exposure piles up on a few provider groups.
Spreading exposure keeps several provider groups growing, and viewers can gain from the bigger pool later.
Schematic. The paper shows that concentrated exposure can polarize the platform into winners and losers and shrink the pie.
Greedy is safe only in a special case
Greedy counts the loss from today’s choice, but ignores the loss from growing the wrong crowd.
Schematics of the paper’s Theorem 3 (linear, identical gains), Proposition 2 (differing gains) and Theorem 2 (the shortfall splits into a “policy” part and a “population” part).
The fix: judge a policy by the crowd it will grow
Score each candidate policy by the populations it is steering toward, not just today’s.
The platform can blend look-ahead with greedy; pure look-ahead worked well in the experiments.
If viewers’ and providers’ responses are unknown, the platform first explores, learns them from data, then commits.
In simulation, looking ahead grows the pie
Greedy halves the provider side; look-ahead grows both sides and ends with about twice the welfare.
The paper’s synthetic test (20 viewer and 20 provider groups, small starting populations); values read off its Figures 1 and 2, approximate. Uniform ends with slightly more providers, but look-ahead spends exposure more efficiently and earns more welfare.
On real viewing data: high welfare and a healthy provider side
Here greedy beats uniform on welfare. Look-ahead matches greedy and keeps almost as many providers as uniform.
KuaiRec: 4,676,570 interactions between 1,411 viewers and 3,326 videos, grouped into 20 viewer and 20 provider groups; the platform had to learn how populations respond. A 60/40 blend of look-ahead and greedy did best overall, and every blend did well.
What this means for platforms
- 1Recommendations shape who shows upViewers and providers grow or shrink with the satisfaction and exposure they get.
- 2Greedy can shrink the pieIt is only safe when every provider group gains from growth in the same steady way; concentrated exposure can drive providers away and hurt viewers.
- 3Look ahead, and spread exposure wiselyScoring policies by the populations they will create grew both sides, and welfare, in the experiments.
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