Digital Dystopia∗
forthcoming, American Economic Review Digital Dystopia∗ Jean Tirole† December 17, 2020 Abstract: Autocratic regimes, democratic majorities, private platforms and religious or professional organizations can achieve social control by managing the flow of information about individuals' behavior. Bundling the agents' political, organizational or religious attitudes with information about their prosocial conduct makes them care about behaviors that they otherwise would not. The incorporation of the individuals' social graph in their social score further promotes soft control but destroys the social fabric. Both bundling and guilt by association are most effective in a society that has weak ties and is politically docile. Keywords: Social behavior, social score, platforms, strong and weak ties, social graph, mass surveillance, divisive issues, community enforcement. JEL numbers: D64, D80, K38. ∗This project received funding from the European Research Council (ERC) under the European Union's Horizon 2020 research and innovation programme (grant agreement no. 669217 - ERC MARK- LIM). Jean Tirole acknowledges funding from the French National Research Agency (ANR) under the Investments for the Future (Investissements d'Avenir) program, grant ANR-17-EURE-0010. The author gratefully acknowledges the financial support of the TSE Digital Center (the list of sponsors is available at https://www.tse-fr.eu/digital). Daron Acemoglu, Amirreza Ahmadzadeh, Roland B´enabou, Aim´e Bierdel, Erik Brynjolfsson, Sylvain Chassang, Bin Cheng, Johannes H¨orner,Paul-Henri Moisson, Charles P´ebereau, two anonymous referees, and participants at conferences (Luohan Academy conference on pri- vacy and data governance, IT & digitization and IO groups at NBER summer institute, 13th Toulouse conference on the digital economy, privacy conference at Princeton University), and at seminars at MIT, Northwestern, Tehran IAS, TSE and University of Auckland provided helpful comments.
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