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"One of these things is Facebook, by far the world's largest social-networking site. In a recent paper, economists Hunt Allcott, Luca Braghieri, Sarah Eichmeyer
by starchild_3001 7y ago
"One of these things is Facebook, by far the world's largest social-networking site. In a recent paper, economists Hunt Allcott, Luca Braghieri, Sarah Eichmeyer and Matthew Gentzkow investigated how much money they had to pay Facebook users in order to get them to deactivate the Facebook app for one or two months. They found that the median amount was $100, and the average was $180 (the latter being larger because a few users really loved Facebook).
This suggests that Facebook, which is free to use, generates a huge amount of utility — more than $370 billion a year in consumer surplus in the U.S. alone. This bolsters the argument of those who believe that free digital services have added a lot of unmeasured output to the global economy.
But Allcott et al. also found that the people who deactivated Facebook as part of the experiment were happier afterward, reporting higher levels of life satisfaction and lower levels of depression and anxiety. The change was modest but significant — equal to about 25 to 40 percent of the beneficial effect typically reported for psychotherapy.
Why are people willing to pay so much money for something that reduces their happiness? One possibility is that social media acts like an addictive drug — in fact, the people Allcott et al. paid to deactivate Facebook ended up using it less after the experiment was over. But another possibility is that people use services like Facebook because they’re compelled by motivations other than the pursuit of happiness."
Another possibility is that your analysis is completely illogical and therefore wrong. People who quit facebook are self-selected. Their experiences doesn't necessarily reflect those who remain on the platform.