The allure of homophily in social media: Evidence from investor responses on virtual communities

Information Systems Research

Volumn 25, Issue 3, 2014, Pages 604-617

  Gu, Bin ^a   Konana, Prabhudev ^b   Raghunathan, Rajagopal ^b   Chen, Hsuanwei Michelle ^c  

^a ARIZONA STATE UNIVERSITY   (United States)

^b UNIVERSITY OF TEXAS AT AUSTIN   (United States)

^c SAN JOSE STATE UNIVERSITY   (United States)

Author keywords

Financial markets; Heterophily; Homophily; Instrumental benefits; Psychological benefits; Psychological biases; Social media; Virtual communities

Indexed keywords

BEHAVIORAL RESEARCH; DECISION MAKING; FINANCIAL MARKETS; INFORMATION DISSEMINATION; INVESTMENTS; VIRTUAL REALITY;

HETEROPHILY; HOMOPHILY; INSTRUMENTAL BENEFITS; PSYCHOLOGICAL BENEFITS; PSYCHOLOGICAL BIAS; SOCIAL MEDIA; VIRTUAL COMMUNITY;

SOCIAL NETWORKING (ONLINE);

EID: 84907583504     PISSN: 10477047     EISSN: 15265536     Source Type: Journal    
DOI: 10.1287/isre.2014.0531     Document Type: Article

References (54)

1. Ajzen I, Fishbein M (1972) Attitudes and normative beliefs as factors influencing behavioral intentions. J. Personality Soc. Psych. 6(4):466-487.
2. Alizadeh S, Brandt MW, Diebold FX (2002) Range-based estimation of stochastic volatility models. J. Finance 57(3):1047-1091.
3. Alonzo M, Aiken M (2004) Flaming in electronic communication. Decision Support Systems 36(3):204-213.
4. Antweiler W, Frank MZ (2004) Is all that talk just noise? The information content of Internet stock discussion boards. J. Finance 59(3):1259-1294.
5. Bantel KA (1993) Comprehensiveness of strategic planning: The importance of heterogeneity of a top team. Psych. Rep. 73(1): 35-49.
6. Barber BM, Odean T (2001) The Internet and the investor. J. Econom. Perspect. 15(1):41-54.
7. Bargh JA, Chartrand TL (1999) The unbearable automaticity of being. Amer. Psychologist 54(7):462-479.
8. Bargh JA, Ferguson MJ (2000) Beyond behaviorism: On the automaticity of higher mental processes. Psych. Bull. 126(6): 925-945.
9. Bateman PJ, Gray PH, Butler BS (2011) The impact of community commitment on participation in online communities. Inform. Systems Res. 22(4):841-854.
10. Baumeister RF, Leary MR (1995) The need to belong: Desire for interpersonal attachments as a fundamental human motivation. Psych. Bull. 117(3):497-529.
11. Beckers S (1983) Variances of security price returns based on highest, lowest, and closing prices. J. Bus. 56(1):97-112.
12. Corfman KP, Kahn BE (1995) The influence of member heterogeneity on dyad judgement: Are two heads better than one? Marketing Lett. 6(1):23-32.
13. Das SR, Chen MY (2007) Yahoo! for Amazon: Sentiment extraction from small talk on the Web. Management Sci. 53(9):1375-1388.
14. Deci EL, Ryan RM (1987) The support of autonomy and the control of behavior. J. Personality Soc. Psych. 53(6):1024-1037.
15. Dellarocas C, Wood CA (2008) The sound of silence in online feedback: Estimating trading risks in the presence of reporting bias. Management Sci. 54(3):460-476.
16. Deutsch M, Gerard HB (1955) A study of normative and informational social influences and individual judgment. J. Abnormal Soc. Psych. 51(3):629-636.
17. Dholakia UM, Bagozzi RP, Pearo LK (2004) A social influence model of consumer participation in network- and small-groupbased virtual communities. Internat. J. Res. Marketing 21(3): 241-263.
18. Faraj S, Johnson SL (2011) Network exchange patterns in online communities. Organ. Sci. 22(6):1464-1480.
19. Fazio RH, Sanbonmatsu DM, Powell MC, Kardes FR (1986) On the automatic activation of attitudes. J. Personality Soc. Psych. 50(2):229-238.
20. Feldman R, Finch M, Dowd B, Cassou S (1989) The demand for employment-based health insurance plans. J. Human Resources 24(1):115-142.
21. Festinger L (1954) A theory of social comparison processes. Human Relations 7(2):117-140.
22. Festinger LA (1957) Theory of Cognitive Dissonance (Stanford University Press, Palo Alto, CA)
23. Forsyth DR (2009) Group Dynamics, 5th ed. (Wadsworth, Cengage Learning, Belmont, CA)
24. Gray HM, Ishii K, Ambady N (2011) Misery loves company: When sadness increases the desire for social connectedness. Personality Soc. Psych. Bull. 37(11):1438-1448.
25. Gu B, Konana PC, Rajagopalan B, Chen HM (2007) Competition among virtual communities and user valuation: The case of investing-related communities. Inform. Systems Res. 18(1):68-85.
26. Horwitz SK, Horwitz IB (2007) The effect of team diversity on team outcome: A meta-analytic review of team demography. J. Management 33(6):987-1015.
27. Johnson NA (2009) Anger and flaming in computer-mediated negotiations among strangers. Decision Support Systems 46(3):660-672.
28. Jones Q, Ravid G, Rafaeli S (2004) Information overload and the message dynamics of online interaction spaces: A theoretical model and empirical exploration. Inform. Systems Res. 15(2): 194-210.
29. Kahneman D, Tversky A (1996) On the reality of cognitive illusions. Psych. Rev. 103(3):582-591.
30. Kandel DB (1978) Homophily, selection, and socialization in adolescent friendships. Amer. J. Sociology 84(2):427-436.
31. Konana PC, Balasubramanian S (2005) The social-economic-psychological model of technology adoption and usage: An application to online investing. Decision Support Systems 39(3):505-524.
32. Kossinets G, Watts DJ (2009) Origins of homophily in an evolving social network. Amer. J. Sociology 115(2):405-450.
33. Lakin JL, Chartrand TL (2003) Using nonconscious behavioral mimicry to create affiliation and rapport. Psych. Sci. 14(4): 334-339.
34. Langer E (1975) The illusion of control. J. Personality Soc. Psych. 32(2):311-328.
35. Mark NP (2003) Culture and competition: Homophily and distancing explanations for cultural niches. Amer. Sociol. Rev. 68(3): 319-345.
36. Mason CH, Perreault WD Jr (1991) Collinearity, power, and interpretation of multiple regression analysis. J. Marketing Res. 28(3):268-280.
37. McFadden D (1986) The choice theory approach to market research. Marketing Sci. 5(4):275-297.
38. McPherson M, Smith-Lovin L, Cook JM (2001) Birds of a feather: Homophily in social networks. Annual Rev. Sociology 27(1): 415-444.
39. Nisbett RE, Borgida E (1975) Attribution and the psychology of prediction. J. Personality Soc. Psych. 32(5):932-943.
40. Nisbett RE, Wilson TD (1977) Telling more than we can know: Verbal reports on mental processes. Psych. Rev. 84(3):231-259.
41. Petty RE, Cacioppo JT (1996) Attitudes and Persuasion: Classic and Contemporary Approaches (Westview Press, Boulder, CO)
42. Raghunathan R, Corfman KP (2006) Is happiness shared doubled and sadness shared halved?: Social influence on the enjoyment of hedonic experiences. J. Marketing Res. 43(3):386-394.
43. Raghunathan R, Trope Y (2002) Walking the tightrope between feeling good and being accurate: Mood as a resource in processing persuasive messages. J. Personality Soc. Psych. 83(3):510-525.
44. Rogers EM, Bhowmik DK (1970) Homophily-heterophily: Relational concepts for communication research. Public Opinion Quart. 34(4):523-538.
45. Schultz PW, Nolan JM, Cialdini RB, Goldstein NJ, Griskevicius V (2007) The constructive, destructive, and reconstructive power of social norms. Psych. Sci. 18(5):429-434.
46. Smith MD, Brynjolfsson E (2001) Consumer decision-making at an Internet shopbot: Brand still matters. J. Indus. Econom. 49(4): 541-558.
47. Stewart G, Barrick MR (2000) Team structure and performance: Assessing the mediating role of intrateam process and the moderating role of task type. Acad. Management J. 43(2): 135-148.
48. Suedfeld P, Bochner S, Matas C (1971) Petitioner's attire and petition signing by peace demonstrators: A field experiment on reference group similarity. J. Appl. Soc. Psych. 1(3):278-283.
49. Swann WB, Griffin JJ, Predmore SC, Gaines B (1987) The cognitive-affective crossfire: When self-consistency confronts selfenhancement. J. Personality Soc. Psych. 52(5):881-889.
50. Todorov A, Uleman JS (2004) The person reference process in spontaneous trait inferences. J. Personality Soc. Psych. 87(4):482-493.
51. Torrance EP (1957) Group decision making and disagreement. Soc. Force 35(4):314-318.
52. Trope Y, Bassok M (1983) Information-gathering strategies in hypothesis-testing. J. Experiment. Soc. Psych. 19(6):560-576.
53. Wellman B, Milena G (1999) Net surfers don't ride alone. Wellman B, ed. Networks in the Global Village (Westview Press, Boulder, CO), 331-366.
54. Zhang XF (2006) Information uncertainty and stock returns. J. Finance 61(1):105-137.