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Network Connectivity and Repeated Interactions in an Information Sharing Dilemma

Author

Listed:
  • Andrea Guido
  • Maxime Derex
  • Rustam Romaniuc

Abstract

The sharing of valuable information is at the root of both economic growth and societal welfare. However, individuals and organizations face a social dilemma when deciding whether to share information with others: while sharing can create positive externalities, it may also reduce one's competitive advantage. We present an incentivized game to study the effect of two social factors on individuals' willingness to share information: reputational concerns arising in repeated interactions and the number of social connections. Our results point to limits of repeated interactions as a factor to motivate sharing of valuable information --- we find that reputation increases information sharing, but only when the number of connections is low. We discuss some behavioral mechanisms that could drive our results.

Suggested Citation

  • Andrea Guido & Maxime Derex & Rustam Romaniuc, 2024. "Network Connectivity and Repeated Interactions in an Information Sharing Dilemma," Annals of Economics and Statistics, GENES, issue 154, pages 51-75.
    • Handle: RePEc:adr:anecst:y:2024:i:154:p:51-75
    DOI: 10.2307/48777886
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    More about this item

    Keywords

    Cooperation; Social Dilemmas; Reputation; Networks; Information Sharing;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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