Contests with Spillovers: Incentivizing Content Creation with GenAI

Researchers propose the Content Creation with Spillovers (CCS) model to address how GenAI and LLMs create positive spillovers where creators' content can be reused by others, potentially undermining individual incentives. They introduce Provisional Allocation mechanisms to guarantee equilibrium existence and develop approximation algorithms to maximize social welfare in content creation ecosystems.

• →GenAI amplifies positive spillovers where one creator's content enhances others' quality through LLM reuse and adaptation.
• →Traditional mechanisms like winner-takes-all fail to create stable equilibrium in spillover environments.
• →The proposed Provisional Allocation mechanisms guarantee unique Pareto-dominant equilibrium existence.
• →Maximizing social welfare under these mechanisms is NP-hard, requiring approximation algorithms.
• →The research provides game-theoretic foundations for sustaining human content creation alongside GenAI.