Topic: “Just One More Clip”: How Do Short Videos Exacerbate Addiction?

Speaker: Renjie Bao, Department of Economics, Princeton University

Time: December 20, 2024, 14:30

Venue: EMS 419

Abstract:

I develop a present-biased framework to analyze how short-form content on social media exacerbates addiction, leading users to consume more than intended. Using microdata from a popular short drama on a leading U.S. platform, I provide empirical evidence of this behavior. Structural estimation reveals that while the intrinsic value of each one-minute episode is, on average, negative, short-term temptation and habit formation sustain engagement. Although users gain an average rational surplus of $0.33 from the 80-minute series, most experience a net loss. Extending episode length is shown to mitigate addictive behavior. A back-of-the envelope calculation for TikTok estimates that such addiction reduces U.S. consumer surplus by $10.2 billion per month, while implementing mandatory five-minute breaks after every 15 minutes of viewing could recover $5.8 billion of this welfare loss.

Guest Bio:

Bao Renjie, Ph.D. candidate in the Department of Economics at Princeton University. His research focuses on industrial organization theory and behavioral economics, with current work concentrating on using structural models to analyze irrational human behavior (such as internet addiction) and corresponding policy measures. Other areas of interest include market power and spatial economics. His research has been published in journals such as Games and Economic Behavior and Economic Research Journal, with working papers currently under review at Review of Economic Studies.