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A system of non-tradable credits that flow between individuals like karma, hence proposed under that name, is a mechanism for repeated resource allocation that comes with attractive efficiency and fairness properties, in theory. In this study, we test karma in an online experiment in which human subjects repeatedly compete for a resource with time-varying and stochastic individual preferences or urgency to acquire the resource. We confirm that karma has significant and sustained welfare benefits even in a population with no prior training. We identify mechanism usage in contexts with sporadic high urgency, more so than with frequent moderate urgency, and implemented as an easy (binary) karma bidding scheme as particularly effective for welfare improvements: relatively larger aggregate efficiency gains are realized that are (almost) Pareto superior. These findings provide guidance for further testing and for future implementation plans of such mechanisms in the real world.

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High quality information is critical for the functioning of democracy. Yet, in the era of growing prominence of social media and a high choice news media environment, it is increasingly difficult for citizens to judge the quality of the information they encounter in their daily lives. Moreover, social and digital media have been found to amplify and accelerate the diffusion of misinformation, providing tools for propaganda at an unprecedented scale. Understanding the mechanics of political misinformation and its connections with public opinion formation is therefore a vital challenge for democracy. Evidence of widespread political ignorance among voters is a long-standing finding in public opinion studies. However, misinformation is also a threat to democracy since it can lead citizens to confidently defend factually incorrect beliefs. Thus, political misinformation leads to two intertwined issues. First, misinformation among voters may lead to distorted judgements of candidates and issues. Second, fake news has become a powerful tool of propaganda in the hands of opportunistic actors. These two issues generate concerns amid the difficulty of fact-checking organizations to tackle the large volume of false news and the recent surge in misinformation and conspiracy theories related to the COVID-19 pandemic. This Research Topic centers around two critical challenges for the scholarship on political misinformation. First, on the demand-side, questions remain around w...