New research from UNSW Business School suggests that social media platforms like Instagram and TikTok don’t need to make users addicted to keep them engaged — they just need to make leaving feel worse than staying.
The study, published in the Journal of Public Economics, found that these platforms create what researchers call “bad networks.” In these networks, being part of the platform can harm users’ wellbeing, but opting out carries an even higher social cost.
According to the researchers, it only takes a small group of early adopters to trigger a chain reaction that draws in everyone else. The study, titled Bad Networks, was co-authored by Professor Robert Akerlof, Scientia Professor Richard Holden, and Dr DJ Thornton from UNSW Sydney. Using game theory, they showed how harmful networks form and persist by reaching a point where no one has an incentive to leave — even if they’re unhappy.
“The upsides of network effects have been widely studied and are well understood,” said Professor Holden. “We wanted to better understand the dark side of networks.”
The researchers found that social media platforms often turn into “rat races” — competitions for likes, followers, and online status that bring no real benefit and can reduce wellbeing. Platforms have an incentive to encourage these dynamics because they increase user numbers, even if they harm users.
“Amplifying the rat race boosts network size, which, while harmful to consumers, may benefit the platform,” the paper stated.
Professor Holden explained that when people are judged by their number of followers or likes, they feel pressure to keep posting and participating to maintain their social standing.
Mounting Evidence of Harm
The study referenced internal Meta research, revealed in the Facebook Files and reported by the Wall Street Journal, showing that Instagram worsened body image issues for one in three teenage girls. Despite knowing this, users continued to participate, and the platform kept growing.
Legal action has since followed. A New Mexico jury recently ordered Meta to pay US$375 million for misleading users about the safety of its platforms and failing to protect children. In another case, a Los Angeles jury found Meta and Google liable for designing Instagram and YouTube to addict young users, awarding US$6 million in damages. Both companies have said they will appeal.
Why People Stay
The UNSW study identified two types of users: “instigators” and “resistors.” Instigators join early to gain visibility and status, setting off a snowball effect that pressures others to join. Resistors, who may dislike the platform, eventually sign up because the social cost of staying away becomes too high.
The researchers compared this to “parties that people do not wish to attend but feel obligated to go to when others are going.”
High-profile influencers often act as instigators, but the same pattern can occur in smaller communities, such as universities or workplaces.
The findings highlight how social media platforms can thrive even when users feel worse for being on them — not because they are addicted, but because leaving feels like losing connection, visibility, or belonging.
