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Social Media and Political Economy

Paper Session

Sunday, Jan. 7, 2018 1:00 PM - 3:00 PM

Pennsylvania Convention Center, 204-C
Hosted By: American Economic Association
  • Chair: David Strömberg, Stockholm University

Trust, Truth, and Selective Exposure to Partisan News

Hunt Allcott
,
New York University
Matthew Gentzkow
,
Stanford University
David Yang
,
Stanford University

Abstract

We will present preliminary pilot results from a project designed to measure the psychological mechanisms behind ideological segregation in digital news consumption. Many commentators (for example, Cass Sunstein in his book Echo Chambers) have raised concern that Americans are increasingly exposed to news and information that confirms instead of challenges their pre-existing ideologies. Sunstein and many others fear that this will make it increasingly difficult for democracies to function, and the events of the last two years in the U.S. and abroad only underscore this concern. A large body of literature empirically documents the extent of this ideological segregation and points to demand, not supply, as the main driver.
This raises a key question: why do we tend to demand ideologically aligned news? Theory and laboratory evidence have highlighted a range of mechanisms that could be at play, but field evidence on their relative importance is limited. The existing theories can be broadly grouped into two categories: (1) those in which partisans believe ideologically aligned sources provide more accurate information; (2) those in which partisans enjoy confirmation of their beliefs, or partisan “cheerleading,” and so choose ideologically aligned sources despite believing they may provide less accurate information.
To distinguish these mechanisms, we build on the following insight: when the stakes are high, we turn to outlets we trust to provide accurate information. Thus, we can identify what outlets people trust by asking people to make predictions about verifiable future events, and randomly varying the incentives for correct predictions. Specifically, we have designed a field experiment where subjects are asked to make predictions on events during the upcoming month (e.g. the occurrence of deadly terrorist attacks). Before making such predictions, subjects are asked to choose news outlets and articles from a news feed that is similar to Facebook or Google News. We randomly provide monetary incentives to a subset of the subjects to reward their correct predictions. In addition, we randomly inform a subset of the subjects regarding the accuracy of the news outlets that they can choose from. The degrees to which subjects respond to incentives and information allow us to disentangle utility driven by a desire for accuracy from psychological utility that is unrelated to accuracy.

Mobile Phones, Social Media, and the Behavior of Politicians: Evidence From Brazil

Filipe Campante
,
Harvard University
Claudio Ferraz
,
Pontifical Catholic University of Rio de Janeiro
Pedro C.L. Souza
,
Pontifical Catholic University of Rio de Janeiro
Pedro Tepedino
,
Massachusetts Institute of Technology

Abstract

We examine the effects of the proliferation of 3G internet and social media on the behavior of politicians regarding their online interactions with voters and their choices with respect to the distribution of resources across localities. We use variation on the placement of 3G cell phone networks across municipalities in Brazil to assess the differential penetration of Facebook across localities and then examine how legislators behave on Facebook and in distributing resources. We show that the entry of 3G internet induce citizens to increase their social media interaction with politicians and we find that politicians increase the amount of earmarked transfers to the municipalities that get connected with 3G internet.

Social Image, Networks, and Protest Participation

Ruben Enikolopov
,
Pompeu Fabra University
Alexey Makarin
,
Northwestern University
Maria Petrova
,
Pompeu Fabra University
Leonid I. Polischuk
,
National Research University Higher School of Economics

Abstract

Social motivation plays an important role in electoral participation, political contributions, and charitable donations. We examine the role of social image concerns in the decision to participate in political protests. We develop a dynamic model of protest participation, where socially-minded individuals use protest participation to signal their type to the peers. We test predictions of the model using individual and city-level data from 2011-2012 political protests in Russia. We report several findings. First, list experiment results imply that social signaling motives indeed were important for the decision to participate in protests. Second, consistent with the model, protest participation was declining over time. Third, participation in online protest groups increased offline protest participation. Fourth, participation in protests was higher in cities with higher social capital. Finally, the importance of both online social networks and offline social capital for protest participation diminished over time, consistent with predictions of the model.

Why Does China Allow Freer Social Media?

Bei Qin
,
University of Hong Kong
David Strömberg
,
Stockholm University
Yanhui Wu
,
University of Southern California

Abstract

Authoritarian governments tend to suppress public communication that may threaten regime stability. Under such circumstances, does the use of social media affect the organization and spread of grass-root collective action such as protests and strikes? This paper examines this question in the context of China from 2007 to 2013. First, we document millions of posts discussing protests and strikes on Sina Weibo, the Chinese version of Twitter, during the sample period. Second, using a difference-in-differences design, we find that the use of Sina Weibo significantly increases the incidence of protests based on observations at the prefecture-month level. The result is robust to the scrutiny of pre-trend and the inclusion of a large set of controls. Third, we find that the use of Sina Weibo substantially increases the geographical distance between strike events that occurred within a narrow time window, plausibly since strikes spread long distances through the network.
Discussant(s)
Ethan Kaplan
,
University of Maryland-College Park
Ruben Durante
,
Pompeu Fabra University
Gautam Rao
,
Harvard University
Noam Yuchtman
,
University of California-Berkeley
JEL Classifications
  • D7 - Analysis of Collective Decision-Making
  • L8 - Industry Studies: Services