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Measuring Substitution Patterns in the Attention Economy: An Experimental Approach

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  • Guy Aridor

Abstract

Substitution patterns are a crucial input to antitrust analysis, but measuring them for free digital products has proved difficult due to the lack of price variation. I measure substitution patterns by installing software on experimental participants' Android phones that restricts access to Instagram or YouTube—generating variation in choice sets—and monitoring how participants reallocate their time. I find that participants substitute to multiple product categories in both restrictions but also substantially for nondigital activities. These results imply that using product characteristics as a proxy for relevant markets may incorrectly specify the relevant set of substitutes in these contexts.

Suggested Citation

  • Guy Aridor, 2025. "Measuring Substitution Patterns in the Attention Economy: An Experimental Approach," RAND Journal of Economics, RAND Corporation, vol. 56(3), pages 302-324, September.
    • Handle: RePEc:bla:randje:v:56:y:2025:i:3:p:302-324
    DOI: 10.1111/1756-2171.70001
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    Cited by:

    1. Beknazar-Yuzbashev, George & Jimenez-Duran, Rafael & Simonov, Andrey & Mateusz Stalinsk, Mateusz, 2026. "Social Media Advertising Loads as Prices," The Warwick Economics Research Paper Series (TWERPS) 1602, University of Warwick, Department of Economics.
    2. repec:ces:ceswps:_12257 is not listed on IDEAS
    3. Beknazar-Yuzbashev, George & Jiménez-Durán, Rafael & Simonov, Andrey & Stalinski, Mateusz, 2026. "Social Media Advertising Loads as Prices," CAGE Online Working Paper Series 792, Competitive Advantage in the Global Economy (CAGE).
    4. Kevin Zielnicki & Guy Aridor & Aur'elien Bibaut & Allen Tran & Winston Chou & Nathan Kallus, 2025. "The Value of Personalized Recommendations: Evidence from Netflix," Papers 2511.07280, arXiv.org, revised Mar 2026.
    5. Orrenius, Johan, 2026. "What is the Value of Attention? Supply and Demand Estimation of Attention in a Mobile App Setting," Working Paper Series 1550, Research Institute of Industrial Economics.

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