New Findings: The Negative Value of Social Media

A study presented at the Economic Society of Australia’s conference reveals shocking findings about social media's actual value. University of Chicago's Leonardo Bursztyn and his colleagues surveyed over 1,000 US students, discovering that platforms like TikTok and Instagram may be valued negatively, suggesting users sometimes wish they would cease to exist.

Canberra, Jul 24 (The Conversation) - Social media poses a significant challenge for economists who struggle to evaluate its worth. A recent study by Leonardo Bursztyn from the University of Chicago, presented at the Economic Society of Australia's annual conference, proposes a groundbreaking view: social media might be less valuable than what consumers pay, which is essentially zero.

The 2019 study highlighted that Facebook is worth approximately USD 40 to USD 50 per month for American consumers. However, in a survey of over 1,000 US university students focusing on TikTok and Instagram, it was found that a significant number would be willing to pay to remain on these platforms, yet many also showed a desire to be free from them provided others were too.

The implications are profound, raising questions about the true value and addictive nature of social media. This research could impact policymakers, particularly with the Australian Senate's upcoming inquiry into social media, by suggesting that tighter regulations might be welcomed by many users.

(With inputs from agencies.)