Social media, markets and minors: A behavioral ethics perspective. The tension between protection and autonomy

Barbara Engels and Jennifer Potthoff

No 12/2025, IW policy papers from Institut der deutschen Wirtschaft (IW) / German Economic Institute

Abstract: Social media has become a central infrastructure of adolescence, offering benefits such as social connection, informal learning, creative expression, and low-cost entrepreneurial opportunities, while simultaneously posing risks including depression, body image concerns, and opaque commercial persuasion. By combining behavioral business ethics with digital economics, this study explores how platform and creator incentives can be aligned with the well-being and developing autonomy of young people without undermining innova- tion. Social media platforms, creators and influencers often exploit developmental vulnerabilities, creating poten- tial market failures and undermining trust in digital markets. Ethical evaluation shows that protecting young people's autonomy and dignity requires categorical duties (deontological lens) such as prohibiting manipula- tive design, dark patterns, and covert monetization - combined with proportionate, welfare-maximizing in- terventions (utilitarian lens). Current EU and German frameworks provide guidance but leave enforcement gaps, particularly in design patterns, age assurance, and transparency in the creator economy. Effective pol- icy measures include default "Young User Mode" settings, dual disclosure of influence and content prove- nance, targeted restrictions for high-risk advertising, and scaled media-literacy programs. Together, these policies realign incentives toward innovation-compatible, healthier engagement models, embedding youth well-being as a design constraint and strengthening trust in digital markets within a social market economy framework.

Keywords: Digitalisierung; Verhaltensökonomik; Verhaltensökonomik und Wirtschaftsethik (search for similar items in EconPapers)
JEL-codes: A13 D91 L86 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/333398/1/1942592523.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwkpps:333398

Access Statistics for this paper

More papers in IW policy papers from Institut der deutschen Wirtschaft (IW) / German Economic Institute Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().