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Opinion Dynamics via Search Engines (and other Algorithmic Gatekeepers)

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  • Fabrizio Germano
  • Francesco Sobbrio

Abstract

Ranking algorithms are the information gatekeepers of the Internet era. We develop a stylized model to study the nterplay between a ranking algorithm and individual clicking behavior. We consider a search engine that uses an algorithm based on popularity and on personalization. The analysis shows the presence of a feedback effect, whereby individuals clicking on websites indirectly provide information about their private signals to successive searchers through the popularity-ranking algorithm. Accordingly, when individuals provide sufficiently positive feedback to the ranking algorithm, popularity-based rankings tend to aggregate information while personalization acts in the opposite direction. Moreover, we find that, under fairly general conditions, popularity-based rankings generate an advantage of the fewer effect: fewer websites reporting a given signal attract relatively more traffic overall. This highlights a novel, ranking-driven channel that can potentially explain the diffusion of misinformation, as websites reporting incorrect information may attract an amplified amount of traffic precisely because they are few.

Suggested Citation

  • Fabrizio Germano & Francesco Sobbrio, 2017. "Opinion Dynamics via Search Engines (and other Algorithmic Gatekeepers)," CESifo Working Paper Series 6541, CESifo.
  • Handle: RePEc:ces:ceswps:_6541
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    Cited by:

    1. Alaoui, Larbi & Germano, Fabrizio, 2020. "Time scarcity and the market for news," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 173-195.
    2. Fabrizio Germano & Vicenç Gómez & Francesco Sobbrio, 2022. "Ranking for Engagement: How Social Media Algorithms Fuel Misinformation and Polarization," CESifo Working Paper Series 10011, CESifo.
    3. Ascensión Andina-Díaz & José A. García-Martínez & Antonio Parravano, 2019. "The market for scoops: a dynamic approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(2), pages 175-206, June.
    4. Fabrizio Germano & Vicenç Gómez & Gaël Le Mens, 2019. "The few-get-richer: a surprising consequence of popularity-based rankings," Economics Working Papers 1636, Department of Economics and Business, Universitat Pompeu Fabra.

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    More about this item

    Keywords

    ranking algorithm; information aggregation; asymptotic learning; popularity ranking; personalized ranking; misinformation; fake news;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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