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When Big Data Enables Behavioral Manipulation

Daron Acemoğlu et al.

American Economic Review: Insights2025https://doi.org/10.1257/aeri.20230589article
AJG 3ABDC A*
Weight
0.68

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. (JEL C55, D83, D91, L86)

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https://doi.org/https://doi.org/10.1257/aeri.20230589

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@article{daron2025,
  title        = {{When Big Data Enables Behavioral Manipulation}},
  author       = {Daron Acemoğlu et al.},
  journal      = {American Economic Review: Insights},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1257/aeri.20230589},
}

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When Big Data Enables Behavioral Manipulation

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Evidence weight

0.68

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.76 × 0.4 = 0.30
M · momentum1.00 × 0.15 = 0.15
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.