Abstract:Kyle (1985) proposes two types of rumors: informed rumors that are based on some private information and uninformed rumors that are not based on any information (i.e. bluffing). Also, prior studies find that when people have credible source of information, they are likely to use a more confident textual tone in their spreading of rumors. Motivated by these theoretical findings, we propose a double-channel structure to determine the ex-ante veracity of rumors on social media. Our ultimate goal is to classify ea… Show more
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