Supporting Online Material for: Charts and Demand: Empirical Generalizations on Social Influence 1. Experimental Design Following Salganik, Dodds, and Watts (2006) (SDW), we employed a social macro experiment consisting of two experimental conditions into which respondents were randomly assigned with twice as many respondents in the independent than in the social influence condition. In both groups, respondents were consecutively confronted with three product categories (music, movies, and scarves) with 30 products each, where they (1) could listen to and download music songs, (2) indicated which movies they would be interested in, and (3) indicated which scarves they would consider. Participants could also rate products on a five star scale, which is widely used in an online context, e.g., in online stores such as amazon. In the independent condition, respondents could listen to the songs (music) or saw a product picture with a description (movies and scarves). In the social influence condition, respondents additionally saw the number of downloads/sales by previous participants in real-time (Fig. A1). SDW used one independent condition, but replicated the social influence condition eight times (“worlds”). Participants were recruited via online banners and guided to a music website where they saw 48 songs in descending order of popularity (social influence conditions) or randomized (independent condition). On the music website, respondents could listen to unknown songs. While listening, they saw a pop-up window with a five star rating scale and a download button where they could rate and indicate their download decision for every song. Figure A1: Screenshot of the selection tasks. In the independent condition, no information on previous downloads was available. Whenever respondents indicated they wanted to download a song, a file transfer was automatically initiated. For movies/scarves participants simply indicated whether or not they would be interested in/consider each of the alternatives. 2 2. Subject recruitment 1,143 participants were recruited from a commercial online panel in 2012. Women comprised 58.3% of the sample. On average, fewer songs were downloaded than products chosen for sale (Table A1), which we attribute to the longer time it took to download a song than to click on a product. Present study SDW Category Independent Influence n 771 372 Downloads songs (mean) 2.57 Interest movies (mean) Independent Influence 1,143 1,446 5,746 7,192 2.77 2.64 1.5 1.4 1.4 7.57 7.26 7.47 - - - Consideration scarves (mean) 8.89 7.87 8.56 - - - Female (%) 57.7 59.4 58.3 n/a n/a 73.9 ≤17 4.59 6.62 5.24 50.9 18-24 31.80 25.09 29.65 39.2 25-31 26.23 29.62 27.31 32-38 29.02 30.66 29.54 39+ 8.36 8.01 8.25 Age (%) Total n/a Total n/a 9.9 Table A1: Descriptives 3. Product selection As we were interested in replicating and expanding the results of SDW, we chose music, movies (as a second cultural market), and scarves (as an identity relevant fashion item) as our main product categories. To avoid possible noise due to brand labels and price, we erased any visible labels and selected scarves without brand reference (like the Burberry tartan) from a similar price category. We also decided to use Bollywood movies to minimize previous knowledge (Table A2). To make the movies comparable, we erased any indication for release dates and made use of mainstream genres. 3 Movie title Om Shanti Om Bollywood/Hollywood Always Kabhi Kabhi Love Aaj Kal Milenge Milenge Khatta Meetha Ek Main Aur Ekk Tu Tere Naal Love Ho Gaya Jodi Breakers The Dirty Picture Tere Mere Phere Tell Me O Kkhuda Breakaway Aarakshan Bol Zindagi Na Milegi Dobara Double Dhamaal Bbuddah Hoga Terra Baap Chillar Party Mausam Rockstar Ra One Udaan Yamla Pagla Deewana Dhobi Ghat Dil Toh Baccha Hai Ji Toonpur Ka Superrhero Isi Life Mein...! Jhootha Hi Sahi Do Dooni Chaar Table A2: List of 30 selected Bollywood movies used in the experiment. The songs used in our study were obtained from a rights-free music website (http://freemusicarchive.org/) which features largely unknown artists (Table A3). We also ensured that the selected songs represented mainstream genres. 4 Band name Song name et_ Children Lab Coast Really Realize Gain Somos Aire The Search The Heart is A Lonely Gringo Star Ask me why Lorenzo's Music You Got to Feel it Tonight Learning Music Night Lights Meanwhileproject ltd. That Day Joey Burns Kodak to Graph Zolembo Clinical Archives Joe Frawley - Meditation Keshco Fly by Nights The Kyoto Epilogue Hands Hold Steven Smirney Deeply Wrong Merrits Garmisch Glimmer Belkastrelka Lirik Untuk Lagu Pop coverclub nl. Laura Vane & the Milk Music I've got a wild feeling Ergo Phizmiz Sticky white Glue Part 7 The Simple Caitlin's on the Beach Kellee Maize Takeover The Woolen Men Land of Laughs Austin Leonard Glowing Windows Yacht Love in the Dark Decade in Exile B.L.A. by Decade in Exile Bandana Splits Back to School Chris Elam Nothing’s there The Agrarians Recognize an Hour Divine Lame Drivers Other Side Halloween Monster on Campus Rhys Lloyd Morgan The Morning Sun Table A3: List of 30 selected songs used in the experiment. 5 4. Data analysis We follow SDW and calculate Gini coefficient to measure market concentration: (1) Market Share (Fig. A2): 𝑚𝑖 = 𝑑𝑖 ∑𝑆 𝑘=1 𝑑𝑘 where 𝑑𝑖 = Number of choices per product i and S = Total number of products per category 1 𝑆 ∑ ∑𝑆 |𝑚𝑖 −𝑚𝑗 | 𝑆2 𝑖=1 𝑗=1 ∑𝑆 𝑘=1 𝑚𝑘 (2) Gini coefficient: 𝐺 = 2× where 𝑆 𝑚 = Market share for certain product and S = Total number of songs We tested the significance between the Gini coefficient of the independent and social influence worlds by 1. Randomly splitting the independent condition into two groups and calculating the Gini coefficient for one half, a procedure which we repeated 1,000 times (cf. SDW). 2. Testing whether the difference between each independent Gini coefficient and the social Rank: minfluence Music minfluence influence Gini coefficient was > 0 which data confirms with p <.001 for all categories. 0.08 0.06 0.04 30 20 10 0.02 0 0 0 0.02 0.04 0.06 0.08 0 10 0.05 0.04 0.03 30 20 0 0.03 0.04 0.05 0 10 mindependent 0.06 0.04 20 30 Rank: mindependent Rank: minfluence minfluence 30 10 0.02 0.02 Scarves 20 Rank: mindependent Rank: minfluence Movies minfluenc mindependent 30 20 10 0.02 0 0.02 0.04 0.06 mindependent 0 10 20 30 Rank: mindependent Fig. A2: Market shares in independent and social influence markets (n=1,143) 6 5. Robustness checks Our sample size is smaller than that of SDW. However, the data reflects relatively stable Gini coefficients (cf. Fig. A3). Figure A3: Dynamics of the Gini coefficients We also checked whether the actual behavior (download/interest/consideration) mirrors the self-reported liking (star rating) (cf. SDW). We can see across categories that this is the case (Fig. A4). Note: Average song downloads are lower than interest in scarves and movies resulting in lower download likelihoods across all ratings (cf. Table A1). 7 Figure A4: Relationship between star ratings and demand, interest and consideration. References Salganik, M. J., Dodds, P. S., & Watts, D. J. (2006). Experimental Study of Inequality and Unpredictability in an Artificial Cultural Market. Science, 311, 854-856. 8