The Choices of Others: An Experiment on Social Search

Maria Bigoni (), Michela Boldrini (), Niccolò Lomys () and Emanuele Tarantino ()
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Maria Bigoni: University of Bologna, CEPR, and IZA
Michela Boldrini: Bocconi University, IGIER, and RFF-CMCC EIEE
Niccolò Lomys: CSEF and Università degli Studi di Napoli Federico II, https://csef.it/people/niccolo-lomys/
Emanuele Tarantino: Luiss University, EIEF, European Commission and CEPR

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: When faced with unfamiliar options, people often rely on the choices of others. We examine how this reliance affects search decisions through a laboratory experiment. Participants choose between two options whose value can only be discovered through costly sequential searches. Some search in isolation; others first observe the final choice, but not the search process, of a peer. This form of social information improves efficiency, yet behavior systematically departs from theory. When selecting which option to sample first, imitation of the peer’s choice is frequent but not universal; moreover, participants often deviate from the optimal stopping rule, with both under and over-search observed. We introduce treatments that allow participants to choose whom to observe and access signals about the reliability of their peers: these interventions increase imitation and improve welfare. Our findings underscore the role of institutional design in facilitating social search, with implications for platform architecture and information diffusion.

Keywords: Sequential Search; Social Information; Institutional Design. (search for similar items in EconPapers)
JEL-codes: C9 D1 D8 (search for similar items in EconPapers)
Date: 2025
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