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Aligning Platform and User Incentives in Social Media Age Restrictions

Author

Listed:
  • Leonardo Bursztyn

    (The University of Chicago; Department of Economics; NBER)

  • Rafael Jiménez-Durán

    (Bocconi University)

  • Aaron Leonard

    (The University of Chicago)

  • Filip Milojević

    (Massachusetts Institute of Technology)

  • Christopher Roth

    (University of Cologne; Department of Economics)

Abstract

Several countries are adopting social media bans for teenagers, yet early evidence suggests limited adherence to the age-based restrictions. Such bans ask platforms to remove profitable customers and teens to give up access to their online social networks. We study an alternative regulatory regime in which platforms remain liable for teens on the adult tier but may offer a safe tier that removes restricted features, such as algorithmic feeds, while preserving interactions with their relevant network. Provision of the safe tier and enforcement are complementary: teens can adhere without giving up access to their network, and platforms can retain displaced adult-tier users as lower-margin customers. This policy design makes the teen decision to avoid the adult tier less dependent on peer dynamics and increases teen welfare for a relevant range of regulatory penalties.

Suggested Citation

  • Leonardo Bursztyn & Rafael Jiménez-Durán & Aaron Leonard & Filip Milojević & Christopher Roth, 2026. "Aligning Platform and User Incentives in Social Media Age Restrictions," Working Papers 2026-129, Becker Friedman Institute for Research In Economics.
    • Handle: RePEc:bfi:wpaper:2026-129
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    File URL: https://bfi.uchicago.edu/wp-content/uploads/2026/10/BFI_WP_2026-129.pdf
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    More about this item

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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