Connectors and Influencers

Syngjoo Choi, Sanjeev Goyal and Frederic Moisan ()

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: This paper reports an experiment on costly information purchase and link formation for information gathering. A `star' network with two information configurations is predicted - a pure influencer outcome in which the hub purchases information while all others free ride and a pure connector outcome in which the hub purchases no information and the peripheral players purchase information. The latter exists only for large groups and the former exists regardless of group size. We test these predictions on a new experimental platform with asynchronous activity in continuous time. Our experiments provide strong support for the predictions with evidence on the role of group size and payoff information. In large groups, the pure influencer outcome with excessive information purchase is prevalent when subjects only see their own payoffs, whereas the pure connector outcome becomes common when subjects see everyone's payoffs.

JEL-codes: C92 D83 D85 Z13 (search for similar items in EconPapers)
Date: 2019-03-28
New Economics Papers: this item is included in nep-cdm, nep-exp, nep-gth and nep-soc
Note: sg472, fm442
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Connectors and Influencers (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:1935

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