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Breaking Down the Market for Misinformation

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Abstract

The spread of misinformation online has been recognized as a growing social problem. In responding to the issue, social media platforms have (i) promoted the services of third-party fact-checkers; (ii) removed producers of misinformation and downgraded false content; and (iii) provided contextual information for flagged content, empowering users to determine the veracity of information for themselves. In a recent staff report, we develop a flexible model of misinformation to assess the efficacy of these types of interventions. Our analysis focuses on how well these measures incentivize users to verify the information they encounter online.

Suggested Citation

  • Gonzalo Cisternas & Jorge Vásquez, 2022. "Breaking Down the Market for Misinformation," Liberty Street Economics 20221128, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:95201
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    File URL: https://libertystreeteconomics.newyorkfed.org/2022/11/breaking-down-the-market-for-misinformation/
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    Keywords

    misinformation; social media; news verification; regulation;
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