Replication data for: Reducing Misinformation on Social Media

We evaluate the effectiveness of media competition and fact-checking as policies to combat misinformation. Using data from 201 university students at Utah State University, we conduct an incentivized laboratory experiment with a 2x2 design (Base, Competition, Fact-checking, Competition + Fact-checking). Each subject played 20 rounds in both sender and receiver roles, with random role reassignment and rematching between rounds. Our findings show that competition among senders significantly increases investment in accuracy when receivers obtain information from multiple sources. Probabilistic fact-checking improves the overall quality of available information but does not incentivize senders to improve their own accuracy. However, combining both policies produces lower investment in accuracy than competition alone, suggesting that fact-checking may crowd out firms' intrinsic incentives under competitive conditions. Our results provide experimental evidence on the relative effectiveness of different approaches to reducing misinformation.