The Economics of Social Media

Journal of Economic Literature, Journal Year: 2024, Volume and Issue: 62(4), P. 1422 - 1474

Published: Dec. 1, 2024

We provide a guide to the burgeoning literature on economics of social media. first define media platforms and highlight their unique features. then synthesize main lessons from empirical organize them around three stages life cycle content: (i) production, (ii) distribution, (iii) consumption. Under we discuss how incentives affect content produced off harmful is moderated. network structure, algorithms, targeted advertisements. consumption, affects individuals who consume its society at large, explore consumer substitution patterns across platforms. Throughout guide, examine case studies deterrence misinformation, segregation, political advertisements, effects outcomes. conclude with brief discussion future (JEL D12, D72, D83, D91, I31, L82, M37)

Language: Английский

Emotional Inattention

SSRN Electronic Journal, Journal Year: 2024, Volume and Issue: unknown

Published: Jan. 1, 2024

We propose a framework where decision-maker allocates attention across payoff-dimensions, which can be different consumption decisions, realizations of an unknown state, or time periods. Attention has two features: (1) it is instrumentally valuable by allowing the to take actions, and (2) leads emotional response, proportional devoted dimension associated payoff. The provides unifying explanation for number behavioral phenomena, such as ostrich effect, optimism, subjective probability weighting skewness-seeking behavior, incomplete smoothing, dynamic inconsistency default effects.

Language: Английский