Optimal Verification of Rumors in Networks

Abstract

We study the diffusion of a true and a false message when agents are biased and able to verify messages. As a recipient of a rumor who verifies it becomes informed of the truth, a higher rumor prevalence can increase the prevalence of the truth. We uncover conditions such that this happens and discuss policy implications. Specifically, a planner aiming to maximize the prevalence of the truth should allow rumors to circulate if: verification overcomes ignorance of messages, transmission of information is relatively low, and the planner’s budget to induce verification is neither too low nor too high.

Keywords: Social Networks, Rumors, Verification