Lectures & Seminars

Topic: Regulating Misinformation in Influencer Markets

Speaker: Professor GUAN Xu, School of Management, Huazhong University of Science and Technology

Time: January 8, 2026, 10:30

Venue: EMS 419

Abstract:

Influencers play a crucial role in shaping consumers' purchase decisions by evaluating and recommending products in exchange for sales commissions. However, misinformation about products, whether due to intentional deception or a lack of expertise to accurately evaluate products, can mislead consumers into purchasing low-value products. This paper investigates how regulations can mitigate misinformation through two mechanisms: penalizing influencers for misrecommendations and improving their expertise. We find that while higher penalties increase the cost burden on influencers and reduce their incentive to recommend a firm’s products, they can also increase consumers' perceived value of the recommended product and ultimately benefit not only consumers but also the influencer and the firm. Surprisingly, although improving influencer expertise enhances the accuracy of product evaluations, it may also incentivize influencers to make deceptive recommendations more frequently, leaving the firm worse off when collaborating with more experienced influencers. From the consumers' perspective, neither increasing the penalty for misrecommendation nor raising influencers' expertise level alone necessarily safeguards them from misinformation and may even backfire. Our findings highlight the need for policymakers to adopt a joint regulatory approach that considers penalties and expertise requirements to curb misinformation in influencer marketing.

Speaker Profile:

GUAN Xu, Professor at the School of Management, Huazhong University of Science and Technology, serves as a Huazhong Distinguished Scholar Chair Professor and is recognized as a National High-Level Talent. His main research interests include supply chain management, the integration of operations and marketing, information design, and platform economy. He has published multiple papers in leading business school journals such as Management Science, Marketing Science, Manufacturing and Service Operations Management, Information Systems Research, and Production and Operations Management. Currently, he holds several academic appointments, including Vice Chairman of the Game Theory Branch of the Operations Research Society of China, Deputy Director of the Production and Operations Management Committee of the Chinese Academy of Management Modernization, and Secretary-General of the Youth Working Committee of the Chinese Society of Management Science and Engineering. He also serves as an Associate Editor for the journals Decision Sciences and Service Science.