Algorithmic Influence of Social Media Platforms on Public Opinion and Economic Decisions in the Digital Age

Abstract

The rapid evolution of social media has fundamentally reshaped the way individuals consume information, interact, and make decisions, with algorithm-driven platforms playing a central role in shaping public opinion and influencing economic choices. This study investigates the interplay between social media algorithms, public discourse, and consumer decision-making by analyzing both qualitative insights and quantitative trends from contemporary research. Results indicate that algorithmic curation fosters selective exposure, filter bubbles, and echo chambers, thereby shaping public opinion and polarizing online communities. At the same time, social media serves as a powerful driver of economic behavior, influencing consumer preferences, purchasing intentions, and market dynamics through targeted advertising and influencer-driven content. While platforms democratize information access and create opportunities for engagement, the increasing opacity and manipulation of algorithmic systems raise concerns over accountability, transparency, and user autonomy. This paper contributes to the literature by offering a multidimensional perspective on how digital platforms simultaneously empower and constrain individuals, highlighting the necessity of regulatory frameworks, media literacy initiatives, and cross-disciplinary approaches to address the societal and economic challenges posed by algorithmic governance.