A person's behavior often affects and is affected by their friends behavior. For example, people often get new ideas and information from their friends and pass new ideas and information on to them. Another example is that people often dress a similar to and have similar interest and hobbies as their friends. Social networks are an effective tool for studying this type of phenomenon because they allow us to see who interacts with who, and thus who's behavior and can effect who.
In this experiment, we test how people's investment decisions depend on their friends investment decisions. That is, your investment decisions might depend on your friends investment decisions. Also, their investment decisions might also depend on their friends, some of whom are your friends and some of whom are not. To understand all of this, in the Investment Game we arrange people in various types of social networks and let them invest with their friends. Each person decides how much they would like to invest and their returns depend on how much they and their friends decide to invest.
What makes this game fun is that you play simultaneously with other people. Also, the more money you make in the game, the more money you make in real life. That's right, we pay for performance. We're running this experiment on Amazon Mechanical Turk. So, give it a shot, earn a few bucks, and let us know what you think!