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Fake News, Information Herds, Cascades and Economic Knowledge
Paper Number: 1442
Date: 03/21/2019
Abstract:

The paper addresses the issue of “fake news” through a well-known and widely studied experiment that illustrates a possible science behind the phenomenon. Public news is viewed as an aggregation of decentralized pieces of valuable information about complex events. Such systems rely on accumulated investment in trust in news sources. In the case of fake news, news source reliability is not known. The experiment demonstrates how fake news can destroy both the investment in trust and also the benefits that news provides.

Paper Length: 24
Paper: sswp1442.pdf