American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Digital Addiction
American Economic Review
vol. 112,
no. 7, July 2022
(pp. 2424–63)
Abstract
Many have argued that digital technologies such as smartphones and social media are addictive. We develop an economic model of digital addiction and estimate it using a randomized experiment. Temporary incentives to reduce social media use have persistent effects, suggesting social media are habit forming. Allowing people to set limits on their future screen time substantially reduces use, suggesting self-control problems. Additional evidence suggests people are inattentive to habit formation and partially unaware of self-control problems. Looking at these facts through the lens of our model suggests that self-control problems cause 31 percent of social media use.Citation
Allcott, Hunt, Matthew Gentzkow, and Lena Song. 2022. "Digital Addiction." American Economic Review, 112 (7): 2424–63. DOI: 10.1257/aer.20210867Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- D61 Allocative Efficiency; Cost-Benefit Analysis
- D90 Micro-Based Behavioral Economics: General
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- I31 General Welfare; Well-Being
- L86 Information and Internet Services; Computer Software
- O33 Technological Change: Choices and Consequences; Diffusion Processes