Seminarios académicos y conferencias
"Fake News in Social Media: A Supply and Demand Approach"
Coautoreado con Gonzalo Cisternas (MIT)
1 Diciembre 2020 - 17:00 hrs.
Vía ZoomVer investigación
Abstract: We introduce a model of a platform in which users encounter news of unknown veracity. Users vary in their propensity to share news and can learn the veracity of news at a cost. In turn, the production of fake news is both more sensitive to
sharing rates and cheaper than its truthful counterpart. As in traditional markets, the equilibrium prevalence of fake news is determined by a demand and supply of misinformation. However, unlike in traditional markets, the exercise of market power is generally limited unless segmentation methods are employed. Combating fake news by lowering verification costs can be ineffective due to the demand for misinformation only being weakly reduced. Likewise, the use of algorithms that imperfectly filter news for users can lead to greater prevalence and diffusion of misinformation. Our findings highlight the important role of natural elasticity measures for policy evaluation.