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The Returns to Viral Media: The Case of US Campaign Contributions

Author

Listed:
  • Böken, Johannes

    (University of Warwick and CAGE)

  • Draca, Mirko

    (University of Warwick and CAGE)

  • Mastrorocco, Nicola

    (University of Bologna)

  • Ornaghi, Arianna

    (Hertie School)

Abstract

Social media has changed the structure of mass communication. In this paper we explore its role in influencing political donations. Using a daily dataset of campaign contributions and Twitter activity for US Members of Congress 2019-2020, we find that attention on Twitter (as measured by likes) is positively correlated with the amount of daily small donations received. However, this is not true for everybody: the impact on campaign donations is highly skewed, indicating very concentrated returns to attention that are in line with a 'winner-takes-all' market. Our results are confirmed in a geography-based causal design linking member's donations across states.

Suggested Citation

  • Böken, Johannes & Draca, Mirko & Mastrorocco, Nicola & Ornaghi, Arianna, 2023. "The Returns to Viral Media: The Case of US Campaign Contributions," CAGE Online Working Paper Series 681, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:681
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    More about this item

    Keywords

    Social Media; Twitter; Campaign Contributions JEL Classification: D72; P00;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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