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

Summary from the TLDR Product newsletter

This study examines the concept of a "social media trap," where the value of platforms like TikTok and Instagram increases for users as more peers join, but also causes disutility for non-users. However, the study challenges the notion that product existence always implies positive welfare and suggests a need for regulatory scrutiny of consumer traps in these domains.