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

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The Economics of Social Media

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

Published: Jan. 1, 2024

We review the burgeoning literature on economics of social media, which has become ubiquitous in modern economy and fundamentally changed how people interact. first define media platforms isolate features that distinguish them from traditional other digital platforms. then synthesize main lessons empirical organize around three stages life cycle user-generated content: (1) production, (2) distribution, (3) consumption. Under we discuss incentives affect content produced off harmful is moderated. network structure, algorithms, targeted advertisements. consumption, affects individuals who consume its society at large, consumer substitution patterns across Throughout review, delve into case studies examining deterrence misinformation, segregation, political advertisements, effects outcomes. conclude with a brief discussion future media.

Language: Английский

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The Behavioral, Economic, and Political Impact of the Internet and Social Media: Empirical Challenges and Approaches

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

Published: Jan. 1, 2024

This paper presents a review of empirical methods used to assess the behavioral, economic, and political outcomes Internet social media usage. Instead merely surveying various impacts Internet, we examine adopted identify these impacts. We describe two main approaches for establishing causal effects, each with strengths limitations. The first approach involves searching exogenous sources variation in access fast or specific content. second takes form field laboratory experiments. In this paper, focus on approach, delving into methodological threats, design, findings most prominent studies that exploit natural quasi-experiments identifying impact high-speed media. undertaking allows us highlight key challenges economics while summarizing relationships literature has uncovered so far.

Language: Английский

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Misinformation technology: Internet use and political misperceptions in Africa

Journal of Comparative Economics, Journal Year: 2024, Volume and Issue: 52(2), P. 400 - 433

Published: Jan. 27, 2024

The use of the Internet to access news has an impact on African citizens' perceptions democracy. Using repeated cross-sectional data from Afrobarometer survey across 35 countries over period 2011–2018, along with instrumental variable approach, allows addressing potential endogeneity bias between and perceptions. results indicate that using obtain information a significant negative effect both preference for perception extent This is due several factors. First, erodes trust in government institutions, mainly parliament ruling party. It increases members are involved corruption. In addition, erosion correlated more political mobilization, form greater participation demonstrations voting. These echo existing literature and, particular, hint at risks reversal nascent democratization processes. Finally, seems act as misinformation channel. On one hand, users' democracy corruption legislators diverge experts' assessments. other likelihood inconsistency respondents' stances their not neutral channel: it tends undermine while also altering about institutions.

Language: Английский

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Mobile Internet and Political Polarization

SSRN Electronic Journal, Journal Year: 2021, Volume and Issue: unknown

Published: Jan. 1, 2021

How has mobile internet affected political polarization in the United States? Using Gallup Daily Poll data covering 1,765,114 individuals 31,499 ZIP codes between 2008 and 2017, I perform a difference-in-differences analysis an instrumental-variable design to show that, after gaining access 3G internet, Democratic voters became more liberal their views increased support for congressional candidates policy priorities, while Republican shifted opposite direction. This increase largely did not take place among social media users. Instead, following arrival of 3G, experienced users from both parties pro-Democratic, whereas less-experienced pro- Republican. divergence is partly driven by differences news consumption two groups: decreased Fox News, CNN, knowledge. Polarization also due realignment voters: wealthy, well-educated people liberal; poor, uneducated people—more conservative.

Language: Английский

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Signaling Universalism

SSRN Electronic Journal, Journal Year: 2023, Volume and Issue: unknown

Published: Jan. 1, 2023

Recent research has studied heterogeneity in universalism vs. in-group favoritism to explain various economic and political behaviors. This paper documents that displayed is significantly affected by social signaling concerns resulting from the anticipation of future interactions. In an online experiment, a decision maker divides money between out-group member, I vary both existence identity – or third-party audience will subsequently play cooperative game with maker. Consistent simple model signaling, find people act substantially more universalist presence audience, as they try match what believe be audience’s preference. Publicly revealed might therefore distorted, which garbles true correlation moral views.

Language: Английский

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The behavioral, economic, and political impact of the Internet and social media: Empirical challenges and approaches

Journal of Economic Surveys, Journal Year: 2024, Volume and Issue: unknown

Published: May 21, 2024

Abstract This paper presents a review of empirical methods used to assess the behavioral, economic, and political outcomes Internet social media usage. Instead merely surveying various impacts Internet, we examine adopted identify these impacts. We describe two main approaches for establishing causal effects, each with strengths limitations. The first approach involves searching exogenous sources variation in access fast or specific content. second takes form field laboratory experiments. In this paper, focus on approach, delving into methodological threats, design, findings most prominent studies that exploit natural quasi‐experiments identifying impact high‐speed media. undertaking allows us highlight key challenges economics while summarizing relationships literature has uncovered so far.

Language: Английский

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Moral Boundaries

Published: Sept. 1, 2023

This article reviews the growing economics literature that studies politico-economic impacts of heterogeneity in moral boundaries across individuals and cultures.The so-called universalismversus-particularism cleavage has emerged as a main organizing principle behind various salient features contemporary political competition, including individual-level spatial variation voting, realignment rich liberals poor conservatives, internal structure ideology, content messaging.A recurring theme is explanatory power universalism for left-wing policy views voting considerably larger than traditional economic variables.Looking at origins universalism, an emerging consensus cross-group partly economically functional reflects morality evolved to support cooperation production.This insight organizes much work on how kinship systems, market exposure, institutions ecology have shaped through their relative benefits localized impersonal interactions.

Language: Английский

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The Economics of Social Media

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

Published: Jan. 1, 2024

We review the burgeoning literature on economics of social media, which has become ubiquitous in modern economy and fundamentally changed how people interact. first define media platforms isolate features that distinguish them from traditional other digital platforms. then synthesize main lessons empirical organize around three stages life cycle user-generated content: (1) production, (2) distribution, (3) consumption. Under we discuss incentives affect content produced off harmful is moderated. network structure, algorithms, targeted advertisements. consumption, affects individuals who consume its society at large, consumer substitution patterns across Throughout review, delve into case studies examining deterrence misinformation, segregation, political advertisements, effects outcomes. conclude with a brief discussion future media.

Language: Английский

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From Tweets to the Streets: Twitter and Extremist Protests in the United States

SSRN Electronic Journal, Journal Year: 2023, Volume and Issue: unknown

Published: Jan. 1, 2023

How does social media affect the composition of political protests in United States? Using early adoption Twitter at 2007 South by Southwest (SXSW) festival as a plausibly exogenous source variation county-level penetration (Müller & Schwarz, 2023), and comprehensive data on protest events, this paper finds that increases frequency overall, but also radicalizes them. disproportionately fuels with participation "extreme" groups—groups are particularly militant, radical, or hateful. These effects do not depend topic nor leaning. I present survey evidence suggesting coordination is only mechanism driving these results: An increase implies an respondent's willingness to justify violence against other people, normalizing extreme groups protests.

Language: Английский

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