Feed for good? On the effects of personalization algorithms in social platforms

Miguel Risco () and Manuel Lleonart-Anguix ()

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: This paper builds a theoretical model of communication and learning on a social media platform, and describes the algorithm an engagement-maximizing platform implements in equilibrium. Such algorithm excessively exploits similarity, locking users in echo chambers. Moreover, learning vanishes as platform size grows large. As this is far from ideal, we explore alternatives. The reverse-chronological algorithm the DSA mandated to reincorporate turns out to be not good enough, so we build the "breaking echo chambers" algorithm, a modification of the platform-optimal algorithm that improves learning by promoting opposite thoughts. Additionally, we seek a natural implementation path for the utilitarian optimal algorithm. This is why we advocate for horizontal interoperability, which interoperability compels platforms to compete based on algorithms. In the absence of platform-specific network effects that entrench users within dominant platforms, the retention of user bases hinges on implementing algorithms that outperform those of competitors.

Keywords: personalized feed; social learning; network effects; interoperability (search for similar items in EconPapers)
JEL-codes: D43 D85 L15 L86 (search for similar items in EconPapers)
Pages: 41
Date: 2024-08
New Economics Papers: this item is included in nep-mic and nep-pay
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