The Attention Economy in the Digital Age
Digital firms in the attention economy use business models that monetise consumer attention, mainly through advertising. This provides free or discounted services to users, who “pay” by viewing ads. While this creates economic value, it also brings negative side effects—such as reduced cognitive abilities—that may impact GDP. Compared to traditional media, digital platforms, especially social media, amplify these effects due to their unique features. Regulators can address these harms, for example, by restricting the most damaging platform features.
