OAFP 4850 - The economics of social media

This course examines social media as a powerful economic institution that shapes how attention, information, and influence are created, distributed, and monetized. Rather than viewing platforms solely as communication tools, we approach them as marketplaces with their own incentives, externalities, and regulatory challenges.

The course begins with the underlying economic logic of social media: why users participate, how firms profit through multi-sided market structures, and how content spreads through algorithmic ranking. It then explores the broader implications of these dynamics, from advertising-based business models and algorithmic fairness, to content moderation, political polarization, misinformation, mental health effects, and addictive product design. Throughout, the course incorporates insights from behavioral economics, industrial organization, and cutting-edge empirical research.

Students gain tools to critically assess platform design choices, the alignment (or misalignment) of private and social incentives, and the policy trade-offs at stake. The course culminates in a research-based group project where students apply economic reasoning and data analysis to a contemporary issue related to social media.

No prior knowledge of data science or advanced econometrics is required. The course includes introductions to econometric thinking and programming for data analysis, providing methodological support to help students design hypothetical experiments or observational strategies aimed at identifying causal effects of interest. Familiarity with basic microeconomics and an interest in digital platforms is the only pre-requisite.

Class materials will be available online, the platform will be introduced in the first class.

• Group Data Project (70%) — Students work in teams to formulate a research question about social media, collect and analyze relevant data, and present their findings in a written report and an oral presentation.
• Active Reading Summary (20%) — individual written memo applying one of the course readings to a new real-world context.
• Class Participation 10%

Students are expected to complete on average one reading before each class. This preparation is essential for active participation in discussions and in-class activities. The group data project requires sustained work throughout the semester, including data collection, analysis, and a final written report and oral presentation.