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A Model of Harmful Yet Engaging Content on Social Media

Author

Listed:
  • George Beknazar-Yuzbashev
  • Rafael Jiménez-Durán
  • Mateusz Stalinski

Abstract

Why do social media users spend so much time consuming content that seemingly harms them? We build a simple model to argue that advertising-driven platforms can find it profitable to display content that harms users when it is complementary to their time spent on the platform. These incentives disappear, absent network effects, in the case of a subscription-based business model because harmful content reduces the willingness to pay for the platform. Our results warn against interpreting increases in engagement on social media as welfare increases.

Suggested Citation

  • George Beknazar-Yuzbashev & Rafael Jiménez-Durán & Mateusz Stalinski, 2024. "A Model of Harmful Yet Engaging Content on Social Media," AEA Papers and Proceedings, American Economic Association, vol. 114, pages 678-683, May.
    • Handle: RePEc:aea:apandp:v:114:y:2024:p:678-83
    DOI: 10.1257/pandp.20241004
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    References listed on IDEAS

    as
    1. Fehr, Ernst & Schmidt, Klaus M., 2006. "The Economics of Fairness, Reciprocity and Altruism - Experimental Evidence and New Theories," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 8, pages 615-691, Elsevier.
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    More about this item

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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