Social Identity and Reciprocity in Online Gift Giving Networks

Compared to traditional channels, Internet transactions are intrinsically untrustworthy in nature. We investigate the impact of social identity and reciprocity on trusting and cooperative behavior in dynamic gift giving networks by means of an online laboratory experiment, with a main focus on value transfers among the users individually and directed towards the group. In this study, we display profile pictures and full names of the experiment participants in order to abrogate anonymity. Moreover, we provide the possibility for private peer-to-peer interaction, in contrast to mere contributions to the entire, undifferentiated group. We find indications for the efficacy of both dimensions as well as for an interaction effect. Our study has implications for the design of information systems where mutual trust between private users forms the basis for market interaction (e.g. ride-, car or apartment sharing platforms).