Social Media and Herding: How do they Affect Rationality and Utility?

Nithin Krishnan

Abstract: This article investigates the influence of social media on the rise of Vape Culture among youth, drawing parallels to historical instances of collective irrationality such as the Dutch tulip mania. With 4.2 billion mobile users on social media platforms and a significant portion of teenagers attributing their initiation into vaping to peer pressure and social media guidance, the study explores the impact of persuasive advertising and influencer-driven trends. It also delves into the psychology of decision-making, as Amos Tversky and Daniel Kahneman's research reveals how individuals may exhibit risk-seeking behavior when faced with choices between vaping and smoking. The article highlights the potential hidden negative utility of vapes and the role of information failure in sustaining their popularity. Additionally, it discusses the moral incentive perceived by consumers in choosing vapes over cigarettes due to lower health risks and environmental concerns. Overall, this research underscores the complex interplay of social media, consumer behavior, and information dissemination in the context of vaping, shedding light on the challenges of addressing the potential health hazards associated with this trend.

Keywords: Social media, Vape Culture, collective irrationality, persuasive advertising, decision-making psychology, hidden negative utility, information failure, moral incentives, health risks, environmental concerns

How to Cite?: Nithin Krishnan, "Social Media and Herding: How do they Affect Rationality and Utility?", Volume 12 Issue 10, October 2023, International Journal of Science and Research (IJSR), Pages: 161-162, https://www.ijsr.net/getabstract.php?paperid=SR231001230502, DOI: https://dx.doi.org/10.21275/SR231001230502