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Measuring Substitution Patterns in the Attention Economy: An Experimental Approach

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  • Guy Aridor

Abstract

Substitution patterns are a crucial input to antitrust analysis, but measuring them for free digital products has proved difficult due to lack of price variation. I measure substitution patterns by installing software on experimental participants’ Android phones that restricts access to Instagram or YouTube – generating variation in choice sets – and monitoring how participants reallocate their time. I find that participants substitute to multiple product categories in both restrictions, but also substantially to nondigital activities. These results imply that using product characteristics as proxy for relevant markets may incorrectly specify the relevant set of substitutes in these contexts.

Suggested Citation

  • Guy Aridor, 2022. "Measuring Substitution Patterns in the Attention Economy: An Experimental Approach," CESifo Working Paper Series 10190, CESifo.
    • Handle: RePEc:ces:ceswps:_10190
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    References listed on IDEAS

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    Cited by:

    1. Leonardo Bursztyn, 2023. "When Product Markets Become Collective Traps: The Case of Social Media," ECONtribute Discussion Papers Series 260, University of Bonn and University of Cologne, Germany.
    2. Jiménez-Durán, Rafael, 2022. "The economics of content moderation: Theory and experimental evidence from hate speech on Twitter," Working Papers 324, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.

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    More about this item

    Keywords

    social media; substitution patterns; attention markets; field experiment;
    All these keywords.

    JEL classification:

    • L00 - Industrial Organization - - General - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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