ABSTRACT The rise of social media has correlated with an increase in political polarization, which many perceive as a threat to public discourse and democratic governance. This paper presents a framework, drawing on social epistemology and the economic theory of public goods, to explain how social media can contribute to polarization, making us collectively poorer, even while it provides a preferable media experience for individual consumers. Collective knowledge and consensus is best served by having richly connected networks that are epistemically (...) integrated: individuals with diverse levels of expertise should be relatively well connected to each other. In epistemically segregated networks, by contrast, we have reason to predict collective epistemic failures. Expert knowledge will be isolated from the majority, leading average opinion to be less informed than is socially optimal, and entrenching disagreements. Because social media enables users to very easily adopt homophilous network connections – connections to those with similar opinions, education levels, and social backgrounds – it is likely to have increased epistemic segregation compared to older media platforms. The paper explains the theoretical foundations of these predictions, and sketches regulatory measures – such as taxes – that might be employed to preserve the public good of a well integrated social media network. (shrink)