When Big Data Enables Behavioral Manipulation

A-Tier
Journal: American Economic Review: Insights
Year: 2025
Volume: 7
Issue: 1
Pages: 19-38

Authors (4)

Daron Acemoglu (Massachusetts Institute of Tec...) Ali Makhdoumi (not in RePEc) Azarakhsh Malekian (not in RePEc) Asuman Ozdaglar (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We build a model of online behavioral manipulation driven by AI advances. A platform dynamically offers one of n products to a user who slowly learns product quality. User learning depends on a product's "glossiness," which captures attributes that make products appear more attractive than they are. AI tools enable platforms to learn glossiness and engage in behavioral manipulation. We establish that AI benefits consumers when glossiness is short-lived. In contrast, when glossiness is long-lived, behavioral manipulation reduces user welfare. Finally, as the number of products increases, the platform can intensify behavioral manipulation by presenting more low-quality, glossy products.

Technical Details

RePEc Handle
repec:aea:aerins:v:7:y:2025:i:1:p:19-38
Journal Field
General
Author Count
4
Added to Database
2026-01-24