Jesse Shore

Facts and Figuring: An Experimental Investigation of Network Structure and Performance in Information and Solution Spaces

Using data from a novel laboratory experiment on complex problem solving in which we varied the structure of 16-person networks, we investigate how an organizations network structure shapes the performance of problem-solving tasks. Problem solving, we argue, involves both exploration for information and exploration for solutions. Our results show that network clustering has opposite effects for these two important and complementary forms of exploration. Dense clustering encourages members of a network to generate more diverse information but discourages them from generating diverse theories; that is, clustering promotes exploration in information space but decreases exploration in solution space. Previous research, generally focusing on only one of those two spaces at a time, has produced an inconsistent understanding of the value of network clustering. By adopting an experimental platform on which information was measured separately from solutions, we bring disparate results under a single theoretical roof and clarify the effects of network clustering on problem-solving behavior and performance. The finding both provides a sharper tool for structuring organizations for knowledge work and reveals challenges inherent in manipulating network structure to enhance performance, as the communication structure that helps one determinant of successful problem solving may harm the other.

Power laws and fragility in flow networks

What makes economic and ecological networks so unlike other highly skewed networks in their tendency toward turbulence and collapse? Here, we explore the consequences of a defining feature of these networks: their nodes are tied together by flow. We show that flow networks tend to the power law degree distribution (PLDD) due to a self-reinforcing process involving position within the global network structure, and thus present the first random graph model for PLDDs that does not depend on a rich-get-richer function of nodal degree. We also show that in contrast to non-flow networks, PLDD flow networks are dramatically more vulnerable to catastrophic failure than non-PLDD flow networks, a finding with potential explanatory power in our age of resource- and financial-interdependence and turbulence.

How intermittent breaks in interaction improve collective intelligence

Significance Many human endeavors—from teams and organizations to crowds and democracies—rely on solving problems collectively. Prior research has shown that when people interact and influence each other while solving complex problems, the average problem-solving performance of the group increases, but the best solution of the group actually decreases in quality. We find that when such influence is intermittent it improves the average while maintaining a high maximum performance. We also show that storing solutions for quick recall is similar to constant social influence. Instead of supporting more transparency, the results imply that technologies and organizations should be redesigned to intermittently isolate people from each other’s work for best collective performance in solving complex problems. People influence each other when they interact to solve problems. Such social influence introduces both benefits (higher average solution quality due to exploitation of existing answers through social learning) and costs (lower maximum solution quality due to a reduction in individual exploration for novel answers) relative to independent problem solving. In contrast to prior work, which has focused on how the presence and network structure of social influence affect performance, here we investigate the effects of time. We show that when social influence is intermittent it provides the benefits of constant social influence without the costs. Human subjects solved the canonical traveling salesperson problem in groups of three, randomized into treatments with constant social influence, intermittent social influence, or no social influence. Groups in the intermittent social-influence treatment found the optimum solution frequently (like groups without influence) but had a high mean performance (like groups with constant influence); they learned from each other, while maintaining a high level of exploration. Solutions improved most on rounds with social influence after a period of separation. We also show that storing subjects’ best solutions so that they could be reloaded and possibly modified in subsequent rounds—a ubiquitous feature of personal productivity software—is similar to constant social influence: It increases mean performance but decreases exploration.

Within-Group Concentration, Between-Group Concentration, and the Winners and Losers of Digital Music Distribution

By lowering search costs, making more products available, and providing access to free content, information technology (IT) has changed patterns of market concentration in media industries such as recorded music. In this paper, I argue that to understand how IT has changed media markets we need to go beyond considering market concentration in terms of the distribution of sales by product, and also consider the distribution of sales by group of products: between-group concentration. With cross-country panel data, I show that IT had different effects on sales that depended strongly on the between-group concentration in each country at the time of the internet shock. I develop and test the hypothesis that the formal industry fared relatively better in markets with more between-group concentration than in markets with less. I conclude with a discussion of lessons and further questions implied by the results.

Social Influence and the Creation of New Markets for Information Goods: A DynamicNetwork Perspective

Given that tastes differ in different markets, how do producers in one market begin to export to other markets? Is it better to be insulated from or influenced by products from outside? I seek an answer to this question by modeling international trade in music recordings as a macroscopic communication network and study its evolution between 1976 and 2006. I find that being influenced by imports does increase the probability of successfully developing new export markets, but only to other countries that have also been influenced by the same imports. I argue that selling in a market changes what is valued in that market, and that new market development can be seen as a consequence of having social influences in common.