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Perverse Ethical Concerns: Online Platforms and Offline Conflicts

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  • Chang, Dongkyu
  • Vong, Allen

Abstract

We study a model where many citizens learn a hidden state individually on an online platform. The platform slants news and imperfectly filters misinformation, triggering conflicts about the state among the citizens. We show that a platform that faces an ethical concern to internalize conflict costs could perversely aggravate conflicts. This cautionary observation highlights that societal efforts to mitigate conflicts, such as investments in ethical algorithms, public awareness campaigns, and government policies, are effective if and only if their implementations are sufficiently aggressive.

Suggested Citation

  • Chang, Dongkyu & Vong, Allen, 2021. "Perverse Ethical Concerns: Online Platforms and Offline Conflicts," MPRA Paper 110507, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110507
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    File URL: https://mpra.ub.uni-muenchen.de/110507/1/platformconflicts.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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