WHEN PRODUCT MARKETS BECOME COLLECTIVE TRAPS: THE CASE OF SOCIAL MEDIA

Summary from the TLDR newsletter

Many people use social media out of a fear of missing out rather than genuine interest, making them worse off than if the platforms didn't exist in the first place. This study looks at this phenomenon to paint a more accurate picture of how social media impacts consumers. It challenges the argument that the mere existence of a product implies positive welfare for its users. The results suggest a heightened need for regulators to assess whether different products create traps for consumers and whether they generate positive welfare.