Understanding the Social Media Product Market Trap

Economists have discovered an odd phenomenon: many people who use social media (even you, maybe?) wish it didn’t exist. But that doesn’t mean they can escape.

• SOURCES:
  • Leonardo Bursztyn, professor of economics at the University of Chicago.
  • Benjamin Handel, professor of economics at the University of California, Berkeley.

• RESOURCES:
  • "When Product Markets Become Collective Traps: The Case of Social Media," by Leonardo Bursztyn, Benjamin Handel, Rafael Jimenez, and Christopher Roth (NBER Working Paper, 2023).
  • "Social Media and Xenophobia: Evidence from Russia," by Leonardo Bursztyn, Georgy Egorov, Ruben Enikolopov, and Maria Petrova (NBER Working Paper, 2019).
  • "Status Goods: Experimental Evidence from Platinum Credit Cards," by Leonardo Bursztyn, Bruno Ferman, Stefano Fiorin, Martin Kanz, and Gautam Rao (NBER Working Paper, 2017).
  • "'Acting Wife': Marriage Market Incentives and Labor Market Investments," by Leonardo Bursztyn, Thomas Fujiwara, and Amanda Pallais (American Economic Review, 2017).
  • "Measuring Crack Cocaine and Its Impact," by Roland G. Fryer Jr., Paul S. Heaton, Steven D. Levitt, and Kevin M. Murphy (Economic Inquiry, 2013).

• EXTRAS:
  • "Is Facebook Bad for Your Mental Health?" by Freakonomics, M.D. (2022).
  • "Why Is U.S. Media So Negative?" by Freakonomics Radio (2021).