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Market Definition in the Attention Economy: An Experimental Approach

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  • Guy Aridor

Abstract

I study demand for popular mobile phone applications by conducting an experiment where I monitor how participants spend time on digital services and shut off access to Instagram or YouTube on their Android phones. I characterize how participants substitute their time during the restrictions by estimating the magnitude of across product category and off phone substitution as well as computing diversion ratios between prominent social media applications. I relate the estimates to ongoing debates about relevant market definition for social media applications and conclude that they may be larger than those considered by regulatory authorities and smaller than those posited by technology companies.

Suggested Citation

  • Guy Aridor, 2022. "Market Definition in the Attention Economy: An Experimental Approach," CESifo Working Paper Series 10190, CESifo.
    • Handle: RePEc:ces:ceswps:_10190
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10190.pdf
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    Cited by:

    1. Leonardo Bursztyn, 2023. "When Product Markets Become Collective Traps: The Case of Social Media," ECONtribute Discussion Papers Series 260, University of Bonn and University of Cologne, Germany.
    2. Jiménez-Durán, Rafael, 2022. "The economics of content moderation: Theory and experimental evidence from hate speech on Twitter," Working Papers 324, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.

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    More about this item

    Keywords

    social media; mobile apps; attention markets; field experiment;
    All these keywords.

    JEL classification:

    • L00 - Industrial Organization - - General - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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