An Experimental Test of Social Network Opportunity, Choice, and Structure in Evaluation Updating

Abstract

In many facets of life, individuals make evaluations that they may update after consulting with others in their peer group or social network. But not all individuals have the same opportunities for social interaction in a given group or network, or the ability and desire to make use of those opportunities that are available to them. Moreover, the configuration of a person’s network can alter how information is spread or signals are interpreted. Hence, mechanisms in addition to individuals’ social opportunities and choices to make use of them come into play in regard to how they may affect how individuals update their evaluations. Distinguishing these mechanisms has, however, been very difficult, because they are entwined. This research develops and employs a novel experimental platform to empirically assess evaluation updating. Participants viewed and evaluated an entrepreneurial video pitch stimulus and were then randomly assigned either to groups and network positions within groups, or to a baseline condition with no opportunity for social interaction and thus peer influence. Results reveal that those assigned a “hub” position in the group network updated their evaluations of the stimulus considerably more negatively than those assigned to “spokes,” or the control condition for no social interaction. Results also demonstrate that group-level network structures that are fully connected magnify negative–but not positive–peer effects given network reverberation and the negativity bias. Theoretical and empirical implications and extensions are discussed. Keywords: Social evaluation, peer effects, networks, experiment, entrepreneurial pitch, agency-structure