The role of wisdom in navigating social media paradoxes: Implications for consumers, firms, and public policy

Abstract

Social media has transformed the nature of communication and simultaneously given rise to paradoxesirresolvable situations where contradictory elements co-exist. These paradoxes are pervasive, and they can jeopardize consumer welfare because they are difficult to navigate. In this conceptual article, we argue that the principles of wisdom provide a unique and constructive lens through which to view the social media landscape with the aim of maximizing well-being. We illustrateThe first five authors led the writing and development of this manuscript. The remaining five contributors are listed alphabetically.

Transformative privacy calculus: Conceptualizing the personalization‐privacy paradox on social media

“…This research contributes to the literature in several ways. First, by exploring the intricate relationship between user well‐being and their emotional connection to the internet and SNS usage (Schneider et al, 2022), we enhance the literature addressing personalization and privacy. We do so by developing and testing a conceptual model regarding the factors influencing the disclosure of personal information for personalization.…”

When the bridge is not human: Algorithmic interference in forming social relationships through the manipulation of weak ties

“…Yet, while they may reasonably recommend other people or content with whom a user can choose to interact, there are necessarily a myriad of options excluded from the choice sets. As we will discuss, these “left out” options are likely to contain a diverse set of opportunities that allow for improvements in personal and societal well‐being (see also Schneider et al, 2022). Relevant here is Banker and Khetani's (2019) empirical work showing that consumers rely on algorithmic recommendations that could lead to welfare loss.…”

“…To our knowledge, little has been offered in marketing to conceptually understand the social media environment driven by algorithms. One exception to this is Schneider et al (2022) who conceptually argued how wisdom could help address three paradoxes of social media – individual, interpersonal, and societal. Other research in marketing often indirectly referenced potential problems with algorithms in more wide‐ranging discussions of the relationship between technological advances and privacy (Acquisti et al, 2020; Mulligan et al, 2020).…”