NDLI: Selection effects in online sharing: consequences for peer adoption

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Selection effects in online sharing: consequences for peer adoption

Content Provider	ACM Digital Library
Author	Taylor, Sean J. Bakshy, Eytan Aral, Sinan
Abstract	Most models of social contagion take peer exposure to be a corollary of adoption, yet in many settings, the visibility of one's adoption behavior happens through a separate decision process. In online systems, product designers can define how peer exposure mechanisms work: adoption behaviors can be shared in a passive, automatic fashion, or occur through explicit, active sharing. The consequences of these mechanisms are of substantial practical and theoretical interest: passive sharing may increase total peer exposure but active sharing may expose higher quality products to peers who are more likely to adopt. We examine selection effects in online sharing through a large-scale field experiment on Facebook that randomizes whether or not adopters share Offers (coupons) in a passive manner. We derive and estimate a joint discrete choice model of adopters' sharing decisions and their peers' adoption decisions. Our results show that active sharing enables a selection effect that exposes peers who are more likely to adopt than the population exposed under passive sharing. We decompose the selection effect into two distinct mechanisms: active sharers expose peers to higher quality products, and the peers they share with are more likely to adopt independently of product quality. Simulation results show that the user-level mechanism comprises the bulk of the selection effect. The study's findings are among the first to address downstream peer effects induced by online sharing mechanisms, and can inform design in settings where a surplus of sharing could be viewed as costly.
Starting Page	821
Ending Page	836
Page Count	16
File Format	PDF
ISBN	9781450319621
DOI	10.1145/2482540.2482604
Language	English
Publisher	Association for Computing Machinery (ACM)
Publisher Date	2013-06-16
Publisher Place	New York
Access Restriction	Subscribed
Subject Keyword	Viral marketing Econometrics Information diffusion Social advertising
Content Type	Text
Resource Type	Article

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