Game theory is a mathematical concept - a connection between mathematics and economics - that aims to anticipate outcomes and solutions to problems which involve competing or overlapping interests. In essence, it measures the reasons why people make the decisions they do.
In the technological jungle we currently live in, social media can have a huge impact on political polarisation. A project named Odycceus, funded by the EU, utilised elements of game theory in order to explore what social media can tell us about social dynamics and potentially assist in the early detection of emerging social or political conflicts. Using data tools, researchers analysed the language, content, and opinions of public discourse over social media. In the game-theoretic formulation, the researchers started with looking into the incentives of the players, who select their actions to maximise their expected utility (benefit or satisfaction). This in turn allowed predictions to be made of how people would change their behaviour if, for example, social media was regulated - this was the basis behind the model. The project was motivated by trying to understand the reasons behind the polarisation of views and the rise of populist movements such as the far-right organisation Pegida, and the tools developed as part of the project aided in doing so. The game-theoretic model developed based on the effect of social feedback on polarisation suggested that the formation of polarised groups online was less about the traditional concept of social media bubbles and echo chambers, and rather suggested that that it was due to the way in which social media users often build their identity by gaining approval from their peers. The organisers of Odycceus stated that “connecting the dots between game theory and polarisation could have real-life applications for things like how best to regulate social media.”
Game theory can also be applied in analysing the intricate relationships between advertisers, social media platforms, and users in the advertising markets. Examining the strategic aspects of game theory can deepen our understanding of the landscape of social media advertising and how advertisers strategically attempt to compete on social media platforms, including factors like targeting, bidding, and adaptation. A study conducted by Yiwei Liu and published in the American Journal of Industrial and Business Management explores the complicated dynamics of these strategic interactions among advertisers and users via social media. The study stated that advertisers use methods such as segmentation and monitoring in order to compete with each other and other factors influencing user behaviour and advertising policies include engagement levels, platform algorithms, and privacy concerns. Additionally, oligopoly market structure (defined as ‘a state of limited competition, in which a market is shared by a small number of producers or sellers’), targeting, ad-auctions, and personalisation are the equilibrium outcomes and potential market structure that arise in the social media advertising market through analysing a game theory framework. The study concluded that the producer (advertiser) that can ultimately win in the market has to have the ability to predict the balance, break it, and constitute a self-advantageous equilibrium.
These are just a couple of examples of the ways in which game theory can be used in order to examine dynamics in various facets of social media. Its applications are wide and far-reaching - for example, in policy implementation regarding advertising and trying to potentially prevent excessive polarisation. Game theory is an important tool that will surely be used more in the future to further examine dynamics, particularly as the use of social media continues to increase.
Ritisha Baidyaray
Comentários