Big Tech’s “attention rents”

🌈 Abstract

The article discusses the concept of "the algorithm" and how it is used in various digital platforms and services. It explores the issues around algorithmic information sorting, the problems with "Surveillance Capitalism" theory, and the concept of "enshittification" - a theory of platform decay where platforms abuse both business customers and end-users. The article also covers topics like rent-seeking, digital rent extraction, and regulatory approaches to addressing platform abuses.

🙋 Q&A

[01] Any feed or search result is "algorithmic"

1. What are the key points made about algorithms in this section?

• Any process that involves more information than can be taken in at a glance or digested in a moment needs some kind of sense-making, which involves an algorithm to put the information in order
• There is always going to be an algorithm involved, whether it's "just show me the things posted by people I follow in reverse-chronological order" or "Alphabetical sort"
• The term "the algorithm" refers to a system for ordering information that uses complex criteria not precisely known to us and can't be easily divined

2. What is the distinction made between a "good" algorithm and "the algorithm" (TM)?

• A "good" algorithm is one that does not seek to deceive or harm us, like showing exact matches for a specific part number search at the top of the results
• "The algorithm" (TM) refers to a system that uses complex, opaque criteria to order information in ways that may not be in the best interest of the user

[02] Platforms are in the algorithm business

1. What are the key points made about platforms and their use of algorithms?

• Platforms have emerged as the endemic form of internet-based business, acting as intermediaries that connect different groups to each other
• Platforms' job is to make connections, which means they are always in the algorithm business, whether matching a driver and rider, an advertiser and consumer, or curating content for users
• These algorithmic choices made by platforms are enormously consequential, as they can shape beliefs and actions in powerful ways

2. How does the article contrast the "Surveillance Capitalism" theory with the "enshittification" theory?

• Surveillance Capitalism assumes that surveillance advertising is devastatingly effective, benefiting advertisers, while enshittification posits that the platform is bad for everyone, including business customers
• Enshittification argues that platforms use algorithmic games to shift value from everyone to the business's shareholders, locking in both end-users and business customers

[03] Algorithmic Attention Rents

1. What is the concept of "algorithmic attention rents" as described in the article?

• Algorithmic attention rents refer to bait-and-switch scams where a platform deliberately enshittifies its recommendations, search results or feeds to show users things that are not what they asked for or expected
• The goal is to extract rent - from users (wasted time, suboptimal outcomes) and from business customers (extracting rents for "boosting", jumbling good results with scammy or low-quality ones)

2. How does the article describe Amazon's use of algorithmic attention rents?

• Amazon's "advertising" product charges sellers to have their products placed above the items Amazon's search engine predicts users will want to buy, a form of gladiatorial combat that forces sellers to surrender an ever-larger share of their profits
• Amazon relies on its long history of surfacing good results and the sheer volume of possible results to get users to click on the sponsored products at the top of the listings

[04] Regulatory approaches to addressing platform abuses

1. What are the key regulatory recommendations proposed in the article?

• Regulators should work with industry to define reportable metrics based on the KPIs used by platforms themselves to manage their algorithmic systems
• Reserving a portion of the top of the screen for "organic" search results, and requiring exact matches to show up as the top result
• Applying an "end-to-end principle" where platforms have a duty to deliver content to users as they've requested, without switching to an algorithmic "For You" feed

2. How does the article suggest the FTC could use its existing authority to address platform abuses?

• The FTC's broad prohibition against "unfair and deceptive" practices under Section 5 of the FTC Act could be used to enforce an "end-to-end" rule, as switching users to a "For You" feed after they've requested a "following" feed could be considered unfair and deceptive