Biased Media - Game Theory (EL5000) Course Project
Download as pptx, pdf2 likes1,187 views
The document analyzes the impact of media bias on advertisers' strategies in game theory, focusing on how favorable, neutral, and critical media coverage affects click-through rates. It provides statistical outcomes based on advertiser decisions and emphasizes that consistent advertising in a single media outlet yields better results than frequently changing outlets. The analysis concludes that media bias significantly influences the success of advertisements and suggests that advertisers should prioritize advertising despite potential media biases.
Biased Media - Game Theory (EL5000) Course Project
- 1. Biased Media Hendy Irawan - 23214344 Advanced Matematics EL5000 / Game Theory
- 2. Is Unbiased Media Better?
- 3. Game, Players & Strategies Sequential Perfect-Information Randomless Game 2 players Advertiser Advertise: Get traffic from medias tweet Forfeit: No traffic Media Pro: Favorable news of supported agenda Neutral: Balanced news reporting Contra: Criticizing opposing views Overhyped: Anecdotes and variety of popular news Game Tree Simulated for 4 moves (64 leaves)
- 4. Outcomes for Advertiser Based on number of Retweets of Medias topic Statistics from @dakwatuna If Advertiser chooses Forfeit then: 0 RTs If chooses Advertise, based on Medias topic: Pro: 10 RTs Neutral: 4 RTs Contra: 70 RTs Overhyped: 110 RTs
- 5. Outcomes for Media Based on Click-Through Rate which determines payout to the media company Statistics from: http://www.quora.com/What-is- the-average-CTR-on-Facebook-Ads Payoff formula: CTR number of Retweets If 0 Advertise moves: 0% If 1 Advertise move: Pro: 0.02% Neutral: 0.03% Contra: 0.08% Overhyped: 0.06% If 2 Advertise moves, pick best CTR from: (viral effect) Pro: 0.16% Neutral: 0.11% Contra: 0.09% Overhyped: 0.07%
- 6. Payoff Matrix: Moves 1 & 2
- 7. Payoff Matrix: Moves 3 & 4
- 8. Game Tree Advertiser moves first
- 9. Game Tree: Move A (Advertiser Advertises)
- 10. Game Tree: Move F (Advertiser Forfeits)
- 11. Maximins ADVERTISER MEDIA Strategy _O_P and _P_O maximizes minimum payoff Maximized minimum payoff is 0 Strategy A_A_ maximizes minimum payoff Maximized minimum payoff is 8 (ANAN)
- 12. Dominations ADVERTISER MEDIA Moves A_A_ strongly dominates other strategies Moves _O_P and _P_O dominates other strategies
- 13. Pure Nash Equilibrium Single Pure Nash Equilibrium is moves AOAP (120, 1920)
- 14. Conclusion Media bias is a factor in success of advertisers click- through rates Since advertiser cannot directly control media, the best move is to advertise If ad performance is not satisfactory, advertise can switch to different media outlet, but still advertise When the game is played sequentially, the viral effect of news article affects the total click-through rates Its preferable to advertise multiple times in a single media outlet than switching media outlets rapidly
- 15. References Viola Chen. Is Media Bias Bad? UCLA. 2007. http://chenv.bol.ucla.edu/ChenV_Bias.pdf Gentzkow, Matthew, and Jesse Shapiro. Media bias and reputation. No. w11664. National Bureau of Economic Research, 2005. http://www.quora.com/What-is-the-average-CTR-on- Facebook-Ads