Back to Papers

The Welfare Effects of Social Media

Hunt Allcott, Luca Braghieri, Sarah Eichmeyer, Matthew GentzkowEconomics公共经济学FT50
American Economic Review2020-02-28New York University; Stanford UniversityDOI
Citations764
Influential35
References144
Semantic Scholar

The rise of social media has provoked both optimism about potential societal benefits and concern about harms such as addiction, depression, and political polarization. In a randomized experiment, we find that deactivating Facebook for the four weeks before the 2018 US midterm election (i) reduced online activity, while increasing offline activities such as watching TV alone and socializing with family and friends; (ii) reduced both factual news knowledge and political polarization; (iii) increased subjective well-being; and post-experiment Facebook use. Deactivation reduced post-experiment valuations of Facebook, suggesting that traditional metrics may overstate consumer surplus. (JEL D12, D72, D90, I31, L82, L86, Z13)

EconomicsWelfarePolarization (electrochemistry)PoliticsOptimismEconomic surplusSocial mediaSocial WelfareSocial psychologyPolitical sciencePsychologyLaw