Abstract
A fundamental feature for understanding the diffusion of innovations through a social group is the manner in which we are influenced by our own social interactions. It is usually assumed that only direct interactions, those that form our social network, determine the dynamics of adopting innovations. Here, we test this assumption by experimentally and theoretically studying the role of direct and indirect influences in the adoption of innovations. We perform experiments specifically designed to capture the influence that an individual receives from their direct social ties as well as from those socially close to them, as a function of the separation they have in their social network. The results of 21 experimental sessions with more than 590 participants show that the rate of adoption of an innovation is significantly influenced not only by our nearest neighbors but also by the second and third levels of influences an adopter has. Using a mathematical model that accounts for both direct and indirect interactions in a network, we fit the experimental results and determine the way in which influences decay with social distance. The results indicate that the strength of peer pressure on an adopter coming from its second and third circles of influence is approximately two-third and one-third, respectively, relative to their closest neighbors. Our results strongly suggest that the adoption of an innovation is a complex process in which an individual feels significant pressure not only from their direct ties but also by those socially close to them.