English

The Politics of Personalized News Aggregation

General Economics 2022-11-17 v9 Theoretical Economics Economics

Abstract

We study how personalized news aggregation for rationally inattentive voters (NARI) affects policy polarization and public opinion. In a two-candidate electoral competition model, an attention-maximizing infomediary aggregates source data about candidates' valence into easy-to-digest news. Voters decide whether to consume news, trading off the expected gain from improved expressive voting against the attention cost. NARI generates policy polarization even if candidates are office-motivated. Personalized news aggregation makes extreme voters the disciplining entity of policy polarization, and the skewness of their signals is crucial for sustaining a high degree of policy polarization in equilibrium. Analysis of disciplining voters yields insights into the equilibrium and welfare consequences of regulating infomediaries.

Keywords

Cite

@article{arxiv.1910.11405,
  title  = {The Politics of Personalized News Aggregation},
  author = {Lin Hu and Anqi Li and Ilya Segal},
  journal= {arXiv preprint arXiv:1910.11405},
  year   = {2022}
}