Shifting online incentive structures to reduce polarization and the spread of misinformation

Steve Rathje and Sander van der Linden

Chapter 6 in Research Handbook on Nudges and Society, 2023, pp 91-108 from Edward Elgar Publishing

Abstract: This chapter argues that the online spread of polarizing content and misinformation is shaped by the incentive structures of social media platforms. Research indicates that divisive content (especially about one’s political out-group) is more likely to go “viral” online—even though most social media users report that they do not want this type of content to spread widely. In other words, the social media “attention economy” incentivizes users, politicians, and news sources to post divisive content, since this content is more likely to capture people’s attention and keep them engaged on social media platforms. The chapter outlines ways to improve online behavior by shifting the incentive structures of online platforms. Specifically, we review psychological interventions that can be implemented within the social media design structure—such as changing social media algorithms, instilling accuracy motives, shifting information diets, and pre-bunking—and discuss tradeoffs between these bottom-up “nudges” and the need for larger-top-down systemic solutions (such as policy changes, content moderation, and regulation).

Keywords: Economics and Finance; Law - Academic; Politics and Public Policy General Academic Interest (search for similar items in EconPapers)
Date: 2023
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