Automated fact-checking tools, cheap and fast but imperfect, are increasingly available on social platforms. We study when such tools can backfire in a sequential social learning model of misinformation. Agents observe an article's reliability and their predecessors' actions, which indicate whether they liked or disliked the article. They may also pay to fact-check it. We examine how welfare, defined as the probability of a correct cascade, changes when a free, error-prone automated tool supplements costly but perfectly accurate manual fact-checking. Two opposing effects arise. Broader use of fact-checking helps agents escape wrong cascades. At the same time, errors from the automated tool can mislead agents who would otherwise have verified the article perfectly, reducing the likelihood of correct cascades. We prove that adding the tool strictly lowers welfare for articles of intermediate reliability when truthful articles are not too informative and manual checking is sufficiently costly. Simulations show that the tool can help on either side of the intermediate range, and that it improves on manual-only checking on average only above a threshold accuracy.
Figures & tables
Fig. 1 : Expected payoff of an agent with posterior π without fact-checking, V , and with it, V−K . Agents with π∈(π,π) would follow the verdict, and those with π∈(π−,π+) , where V−K>V , also find it worth the cost and fact-check. Here e1=0.4 , e2=0.1 , K=0.15 .
Fig. 2 : Expected payoff of an agent with posterior π if she does not fact-check, V , and if she fact-checks using method M , VM−KM , where VM is given in ( 3 ). The highest curve (thick) is her expected payoff and the strip below shows her choice. π⋆ is where the curves of MH and MA cross. At the ends, where VA=V (as MA is free), she is indifferent and does not check (see Section II-B ). This tie-break is immaterial, since no verdict of MA would change her action. π−H:=π−(MH) , π±A:=π±(MA) , KH=0.3 .
Fig. 3 : Welfare change in regime (iii) : KH=0.3 , e1A=0.3 , e2A=0.1 . Lines: the thresholds ( 11 )–( 14 ) bounding the regions where Proposition 2 certifies the sign ( + , − ), and 0 where a cascade starts at t=1 under both method sets. Bold tick marks pˉ .
Fig. 4 : Welfare change in regime (ii) : KH=0.3 , e1A=0.45 , e2A=0.15 . Lines: the thresholds ( 11 )–( 14 ) and r⋆ bounding the regions where Proposition 3 certifies the sign ( + , − strict, ≤0 weak, 0 ). Bold ticks mark pκ and pˉ . The horizontal dotted line in (b) marks p=pκ .
Fig. 5 : Welfare W averaged over r∼Unif(0,1) against the balanced accuracy α=1−21(e1A+e2A) of MA along e1A=3e2A . KH=0.3 , p=0.55<pˉ are fixed. Estimates are based on 20000 articles, with ±1 standard deviation shown in bands. Vertical lines: τuse , below which no agent uses MA ; τall , above which every agent who checks does; τ0 , above which {MH,MA} has higher welfare than {MH} . Top strip: regimes (i) – (iii) . Diamond, square: the MA of Sections IV-A , IV-B .