The Influence of Social Comparison and Peer Group Size on Risky Decision-Making

Abstract

This study explores the influence of different social reference points and different comparison group sizes on risky decision-making. Participants were presented with a scenario describing an exam, and presented with the opportunity of making a risky decision in the context of different information provided about the performance of their peers. We found that behavior was influenced, not only by comparison with peers, but also by the size of the comparison group. Specifically, the larger the reference group, the more polarized the behavior it prompted. In situations describing social loss, participants were led to make riskier decisions after comparing themselves against larger groups, while in situations describing social gain, they become more risk averse. These results indicate that decision making is influenced both by social comparison and the number of people making up the social reference group.

The Supporting Role of Mentees’ Peers in Online Mentoring: A Longitudinal Social Network Analysis of Peer Influence

“…As research shows that peer influence differs during development (e.g., Steinberg and Monahan, 2007), we also investigated the moderating role of age for peer influence on mentoring outcomes. Furthermore, we investigated the role of peer group size concerning peer influence on mentoring outcomes (as indicated by e.g., Wang et al, 2016). To obtain more reliable estimates of peer influence effects, we controlled for selection processes that determine the peer relationship network evolution, for mentoring experience, as well as for the number of mentors in a mentee's email and private chat message exchange.…”

“…On online mentoring platforms, a mentee can potentially interact (via messaging tools) with a varying number of other mentees. Research from offline context indicates that the larger the peer group an individual interacts with, the more pronounced the peer influence (e.g., Wang et al, 2016). An explanation for this might be a kind of "contagiousness."…”

“…As research shows that peer influence differs during development (e.g., Steinberg and Monahan, 2007), we also investigate the moderating role of age when it comes to peer influence on mentoring outcomes. Furthermore, we consider that the contributing role of the size of a mentee's peer group (as indicated by e.g., Wang et al, 2016) might impact mentoring outcomes.…”

“…On online mentoring platforms, a mentee can potentially interact (via messaging tools) with a varying number of other mentees. Research from offline context indicates that the larger the peer group an individual interacts with, the more pronounced the peer influence (e.g., Wang et al, 2016 ). An explanation for this might be a kind of “contagiousness.” Similar to disease infections – where it is evident that the more people an individual has contact with, the more likely he or she will become infected with a contagious disease ( Ferrari et al, 2006 ) – interacting with a large number of peers with similar values, interests, and behaviors is more likely to lead to an adaption of the same values, interests, and behaviors.…”

Financial Management Behavior Among Young Adults: The Role of Need for Cognitive Closure in a Three-Wave Moderated Mediation Model

“…Lastly, NCC and its correlates of ambiguity intolerance and risk aversion have always been analyzed from an individual perspective. However, recent works propose the possible influence of social comparison in decision making in general and, specifically, in risk-taking behavior ( Wang et al, 2016 ). In this sense, it would be interesting to analyze in future works the influence of the social gains of decisions and their possible interaction with the decision-makers’ NCC.…”