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Opinion dynamics via search engines (and other algorithmic gatekeepers)

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Abstract

Ranking algorithms are the information gatekeepers of the Internet era. We develop a stylized framework to study the effects of ranking algorithms on opinion dynamics. We consider rankings that depend on popularity and on personalization. We find that popularity driven rankings can enhance asymptotic learning while personalized ones can both inhibit or enhance it, depending on whether individuals have common or private value preferences. We also find that ranking algorithms can contribute towards the diffusion of misinformation (e.g., “fake news”), since lower ex-ante accuracy of content of minority websites can actually increase their overall traffic share.

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  • Fabrizio Germano & Francesco Sobbrio, 2016. "Opinion dynamics via search engines (and other algorithmic gatekeepers)," Economics Working Papers 1552, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2018.
    • Handle: RePEc:upf:upfgen:1552
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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 Algorithms; Opinion Dynamics; Website Traffic; Asymptotic Learning; Stochastic Choice; Misinformation; Polarization; Search Engines; Fake News.;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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