Social Connectedness and Information Markets
研究社会连接性如何影响信息市场中的信息质量，发现连接性过高或过低都会降低质量，而增加错误信息量或消费者收听成本反而能提升均衡质量。
This paper investigates information quality in a simple model of socially connected information markets. Suppliers’ payoffs derive from the fraction of consumers who see their stories. Consumers prefer to share and act only on high-quality information. Quality is endogenous and highest when social connectedness is neither too high nor too low. In highly connected markets, low-quality stories are widely seen, giving suppliers little incentive to invest in quality. Increasing the volume of misinformation and increasing consumers’ costs of tuning in to suppliers’ broadcasts can each increase equilibrium information quality.