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Vol.:(0123456789)
Group Decision and Negotiation (2023) 32:435–467
https://doi.org/10.1007/s10726-023-09814-4
1 3
Facing Reciprocity: How Photos andAvatars Promote
Interaction inMicro‑communities
TimmTeubner1· SoniaCamacho2
Accepted: 10 January 2023 / Published online: 8 February 2023
© The Author(s) 2023
Abstract
Online platforms facilitate the formation of micro-communities on the Internet by
enabling exchange between locally dispersed individuals. Since all interactions are
mediated through the online platform, user representation plays a critical role for
such communities. Grounded in Social Exchange Theory, we report results of a
behavioral experiment on the role of user profile photos and avatars for the emer-
gence of network structures over time. While overall network value increases
slightly, the underlying structures of exchange shift systematically from many weak
ties to fewer but significantly stronger reciprocal exchange relations. Interestingly,
despite representing users in a highly abstracted way, avatars yield outcomes compa-
rable to those when using actual photographs. We discuss theoretical and practical
implications of how online platforms can leverage social cues such as profile photos
and avatars to manage and support micro-communities.
Keywords Laboratory experiment· Micro-communities· Reciprocity· Social cues·
Social exchange theory
Mathematics Subject Classification C9· D61· D85· D91
* Timm Teubner
Sonia Camacho
1 Einstein Center Digital Future (ECDF), Technical University ofBerlin, Wilhelmstraße 67,
10117Berlin, Germany
2 School ofManagement, Universidad de los Andes, Carrera 1 18A-12, Bogotá111711,
Colombia
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1 Introduction
Online platforms facilitate the formation of micro-communities by enabling
social exchange between locally dispersed individuals with mutual interests or
goals (Lasfer and Vaast 2018; Preece 2000). Examples include communities for
knowledge exchange (Buendía etal. 2018; Pedersen and Lupton 2018), resource
sharing (e.g., Nextdoor), as well as social and professional networking sites
(Grissa 2016). Value created in these communities stems from different forms of
exchange between members where typical interactions include the provision of
advice, answers, hints to job or accommodation vacancies, endorsements, testi-
monials, or simply the sharing of photos, links, or otherwise relevant content. In
a more abstract sense, one user creates value for another user at some cost (e.g.,
time and effort), where the cost is typically smaller than the value created (Bern-
inghaus etal. 2008). Thereby, the creation of value is often motivated by expecta-
tions about reciprocity, where helping someone else today is associated with the
prospect of own benefits in the future (Güth etal. 2010).
Importantly, in such micro-communities, members do not come together for
once-off interactions but multiple times over the course of days, moths, or even
years, establishing transactional histories and knowing with whom they have
interacted in the past (i.e., whom they helped and who helped them). As this cre-
ates path dependencies, it is hence important to take into account (at least the
recent) history of interactions when seeking to understand individual behavior at
any given point in time. Moreover, this also warrants a deeper investigation into
how behavior and outcomes develop over time—both on the individual and group
level.
Considering all interactions are mediated by the online platform, user repre-
sentation plays a pivotal role in this environment. A crucial design decision thus
pertains to how users should be represented in the micro-community. On most
platforms, they can upload a photograph of themselves as their digital represen-
tation (Hesse etal. 2020; Lee etal. 2014), typically in the form of portrait-like
profile pictures (Teubner etal. 2021). Thereby, the platform employs a key fea-
ture of virtually all forms of social exchange in the real world: the processing of
visual appearance in face-to-face encounters. After all, what automatically comes
to mind when thinking about other people is their faces (Tamir and Ward 2015).
Hence, it does not come as a surprise that online communities leverage visual
representations.
The increasing blending of online platforms, virtual worlds, and potential
future metaverse applications also introduces other forms of user representation,
specifically avatars. Avatars refer to stylized graphical user representations that
capture characteristic human features (Bailenson and Blascovich 2004). As pho-
tos have raised various concerns, mainly around privacy and discrimination, ava-
tars are becoming more and more popular with users (Micallef and Misra 2018;
Wolverton 2018). This trend is also evidenced in the popularity of applications
such as Bitmoji, Zepeto, or the Codec Avatar project (Apple 2022; Facebook
2019; Gaus 2018; Nusca 2017; Tech at Meta 2022). Vivid user representations
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Photos and Avatars in Micro-Communities
have been found to facilitate exchange relations in various contexts (Bente etal.
2014), and avatars may serve as a viable extension, or even alternative, to photo-
graphs—in particular when privacy is a concern.
This gives rise to questions in view of expectations about reciprocity, the facilita-
tion of individual transactions, and the emergence of community value when different
forms of representation are being used (Hesse etal. 2020; Lee etal. 2014; Tamir and
Ward 2015). While user photographs and avatars have been studied for online social
networks (Steinbrück etal. 2002; Wang etal. 2010), the sharing economy (Ert etal.
2016; Fagerstrøm et al. 2017), public good experiments (Teubner etal. 2013), elec-
tronic commerce (Karimi and Wang 2017), and e-learning (Kear etal. 2014), little is
known about the specific differences between photos and avatars as well as the role of
such cues for facilitating multilateral relations over time (i.e., such as seen in micro-
communities). Prior research has mostly investigated the role of user representation
for static (i.e., snapshot) and bilateral community interactions. In contrast, the role of
user representation in dynamic scenarios as well as for multiple exchange relations has
remainded largely unexplored. Moreover, only few studies have deliberately considered
how and under which conditions photos and avatars differ in terms of outcomes—and
when they do not. Against this backdrop, this paper addresses the following overarch-
ing research question: To what extent does the availability of profile images (pho-
tographs/ avatars) affect the process of network formation and value creation in
online micro-communities, and how do outcomes depend on the employed type
of profile imagery? To address this question, we present behavioral evidence from a
controlled, multi-period laboratory experiment.
We find that while overall network value increases slightly over time, the under-
lying network structures of exchange shift systematically from many weak ties to
fewer but significantly stronger reciprocal exchange relations. Interestingly, despite
representing users in a highly abstracted way, avatars yield results similar to those of
using actual photographs. This study hence contributes to Social Exchange Theory
(SET) by empirically demonstrating two mechanisms that govern how specifically
reciprocal relations—as posited by SET—develop over time and what this means
on a network-level. In addition, results extend the literature on avatars’ influence on
user behavior by illustrating similarities and differences in the effects of avatars and
photos in the absence of other forms of communication.
The remainder of this paper is organized as follows. Section2 sketches out the
study’s theoretical background and develops our hypotheses. Section 3 then pre-
sents method and the experimental design. Next, Sect.4 reports the results which we
discuss in view of theoretical and practical implications as well as limitations and
future work in Sect.5. Last, Sect.6 concludes the manuscript.
2 Theoretical Background andHypotheses
2.1 Social Exchange Theory
Social Exchange Theory (SET) posits that human relationships are formed based
on subjective cost–benefit analysis (Blau 1967). Originating from the nexus of
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economics, psychology, and sociology, SET conceptualizes interpersonal interac-
tions as a form of social trade, where individuals’ actions are contingent on the ben-
efits they (expect to) receive from others (Homans 1961; Kelley and Thibaut 1978;
Uehara 1990). Summarized across all actors of a network, this net benefit can be
thought of as value creation. Exchanges are prompted by resources’ value and their
dispersion across different individuals (Levine and White 1961). The value of those
resources is materialized through exchanges (e.g., the transfer of ideas, knowledge,
objects, goods, or services). As such, (social) network analysis lends itself well to
study how resources are exchanged within a micro-community. Specifically, network
analysis allows to assess key characteristics of the formation of social exchange in a
network through measures such as network density (Mitchell 1969) and reciprocity
(i.e., “a user strategy to return received favors in a similar way”; Lee etal. 2010, p.
136).
2.2 Reciprocity inSocial Exchange
The notion of reciprocity plays a major role in how social exchange unfolds. It refers
to bi- and multilateral relations of exchange between individuals where one actor
creates value for another that is expected to be returned in good faith, entailing some
agreed-upon standard of equivalence (Berninghaus etal. 2008; Gouldner 1960). As
such, the concept of reciprocity is widely used in Social Network Analysis where it
is referred as the “degree to which individuals report the same (or similar) intensi-
ties with each other” (Scott etal. 2008, p. 203). Here, intensity refers to the “strength
of the relation as indicated by the degree to which individuals honor obligations or
forego personal costs to carry out obligations” (Mitchell 1969; Tichy etal. 1979, p.
509).
Reciprocity represents a core success factor for social exchange relations in
the long run (Cook and Rice 2003; Emerson 1972). Reciprocal exchanges do not
involve explicit bargaining; they are contigent on each party’s actions and thus, often
emerge over time (Cropanzano and Mitchell 2005; Molm 2003). Considering a com-
munity of actors, tracing exchange relations reveals network structures (Cook and
Rice 2003; Surma 2016). Individuals have finite resources (e.g., time) which leads
them to be selective in choosing exchange partners (Levine and Kurzban 2006). In
this sense, reciprocal exchanges tend to function as a stabilizer within networks. As
individual cost–benefit analysis will ultimately define the network structure, reci-
procity is essential for network formation (Mitchell 1969; Scott etal. 2008; Tichy
etal. 1979).
Reciprocity has been found a critical factor in a range of contexts, including per-
sonal relations (Buunk and Schaufeli 1999), online reviews (Bolton et al. 2013),
elections (Finan and Schechter 2012), organizations (Settoon etal. 1996), and more
abstract economic exchange scenarios (Berg etal. 1995; Berninghaus etal. 2008).
One particular finding is that in many cases, factors that may have an impact on
the unilateral provision of resources (e.g., frequency of contact, similarity between
exchange partners) only play a secondary role: Whether an actor decides to provide
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Photos and Avatars in Micro-Communities
resources or not is contingent on whether they received resources before (Plickert
etal. 2007), that is, whether a reciprocal relation could be established.
More recently, scholars have explored how reciprocity is manifested in social
networking sites. In this context, reciprocity is often applied to the notion of self-
disclosure: as individuals receive others’ personal information over time, they recip-
rocate by sharing their own personal information with them (Posey etal. 2010). In
the same vein, reacting to content posted by others (e.g., in the form of a “like” or
comment) is hoped to elicit reactions when posting own content (Surma 2016). In a
way, the process of value creation hence relies on an initial spark of value and then
enters a cycle of further contributions. Feelings of indebteness represent drivers of
reciprocation in knowledge exchange (Feng and Ye 2016) and gift giving on social
network sites (Kim etal. 2018). Chen etal. (2018) find that reciprocity is effective to
move users from low to medium motivational states to contribute within Q&A com-
munities. Ye etal. (2018) study reciprocity in an online book barter market, where
they find reciprocal relationships to help improving exchanges through “lower rejec-
tion rates and faster delivery speeds” (p. 521).
2.3 Photos andAvatars asCarriers ofSocial Cues
Before exchanges take place, individuals seek social cues to learn that resources are
available and that they are worth pursuing (Hobfoll 2002) and to assess the risk of
free riding, that is, that the contributions they provide in good faith will not be recip-
rocated (Das and Teng 2002). Importantly, for micro-communities, all interactions
are mediated through the platform which deliberately integrates social cues to sup-
port trust-building (Halbesleben etal. 2014; Lasfer and Vaast 2018). A commonly
used cue, in this regard, are prospective exchange partners’ photographs (Dai etal.
2018; Teubner etal. 2022; Zhang etal. 2018).
The importance of facial imagery as carriers of social cues can be understood
based on evolutionary psychology. To facilitate positive human interactions and
survival, humans have developed the ability to process the cues embedded in facial
imagery and to make assessments of trustworthiness thereupon (Bente etal. 2012;
Riedl etal. 2014). In this sense, the availability of a photograph represents a subtle
form of visual communication. Individuals can utilize profile photos to create posi-
tive self-presentations, for instance, to appear happy, friendly, successful, or self-
conscious to others (Wang etal. 2010; Wu etal. 2015). Smiling facial expressions
have been found to increase inferred trustworthiness (Ert and Fleischer 2017). For
the selection of profile images, users tend to choose posed images (Hum etal. 2011;
Wu etal. 2015) and attempt to appear genuine and authentic (Whitty etal. 2014).
As such, photographs may render interactions more personal (Stephenson etal.
1976). Since trust in online environments is not formed solely based on calculative
processes but also relies on “soft” signals, profile photos may serve as an effective
component towards this end (Qiu and Benbasat 2010; Steinbrück etal. 2002). Pro-
file photos can be assumed to be particularly powerful because the human brain is
“hardwired” to intuitively process faces (Anzellotti and Caramazza 2014), involving
a brain area referred to as the fusiform face area in the extrastriate cortex (Kanwisher
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T.Teubner, S.Camacho
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etal. 1997). This is exemplified by the fact that infants react to faces within the first
minutes after birth (Goren etal. 1975). In addition, detecting facial expressions hap-
pens unconsciously and fast (Willis and Todorov 2006). Representing an inherently
social signal, human faces foster trust in a variety of online environments (Cyr etal.
2009; Gefen and Straub 2003, 2004; Hassanein and Head 2007; Ou etal. 2014; Qiu
and Benbasat 2010; Steinbrück etal. 2002). Based on such photos’ trust effect and
its implications for social exchange behavior, we hypothesize that.
H1 Within micro-communities, the availability of profile photos yields higher net-
work (a) value, (b) density, and (c) reciprocity as compared to default images.
Similarly, an individual’s representation in the form of an avatar can also be con-
sidered as a social cue that allows to make inferences about them (Burgoon etal.
2008; Isbister et al. 2000; Morrison etal. 2012). Avatars do not display a photo-
realistic but a stylized depiction of the represented person. However, by depicting
human features (e.g., hair style, clothing, accessories), avatars also induce social
presence (Bailenson and Blascovich 2004), in particular for immersive virtual envi-
ronments (Lee etal. 2009; Nowak and Biocca 2003; Qiu and Benbasat 2005). Past
research on the use of avatars (see Table1 for summary of studies) suggests that
evaluations of avatars’ characteristics such as attractiveness, empathy, and perceived
social support influence positively the development of satisfying social interactions
(Banakou etal. 2009; Guadagno etal. 2011), intentions to shop online (Chattaraman
etal. 2012; Mull etal. 2015), compliance with favors (Waddell and Ivory 2015),
and improved task performance (Ratan etal. 2016; Ratan and Sah 2015). In fact,
Tong etal. (2000) showed that the fusiform face area is activated not only for pho-
tos of human faces, but also for animal and cartoon faces and concluded that “car-
toons are readily perceived as animate faces” (p. 264). In addition to humans, even
other primates (such as macaques) exhibit comparable brain activation for cartoon
and real faces, but not for non-face objects (Freiwald etal. 2009). In other words,
whatever appears to be a face is processed as such by the brain. This is reasonable
from an evolutionary point of view, as for most of human history—without artifi-
cial images—everything that looked like a face—in fact—was a face, and needed to
be recognized rapidly to assess sentiment and intentions. We hence suggest that the
above arguments extend to avatars:
H2 Within micro-communities, the availability of avatars yields higher network (a)
value, (b) density, and (c) reciprocity as compared to default images.
2.4 Avatars Versus Photos
When thinking about the potential differences between photos and avatars in view of
outcomes, it is important to note that avatars may differ greatly in terms of abstrac-
tion/detail, emotional expressiveness, realism, and likability (i.e., “cuteness”). Any
hypothesing on an avatars effect will have to be conducted in view of the specific
avatar design at hand—as avatar design may range from highly abstract “stickman”
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Photos and Avatars in Micro-Communities
Table 1 Related Literature on avatars and human behavior
Study (Authors, Year) Focus Method Context Sample (size, origin) Theory/constructs
Banakou etal. (2009) Effect of avatar appear-
ance on users’ sociabil-
ity
Virtual ethnography Virtual world 9, Not indicated Number of social encoun-
ters (private and public)
von der Pütten etal.
(2010)
Differences in reaction to
interacting with agents
(i.e., controlled by arti-
ficial intelligence) and
avatars (i.e., controlled
by humans)
Lab experiment Self-disclosure tasks 83, US Threshold model of social
influence, Ethopoeia
concept
Saunders etal. (2011) Exploring the notions
of space, place, and
presence
Lab experiment Virtual world: Second
Life; (brainstorm tool,
organizer tool, voting
tool)
150, Alpine Executive
Center, Second Life
Theory of virtual space and
place, Social Presence,
Perceived Ease of Use,
Perceived Enjoyment,
Focused Immersion
Guadagno etal. (2011) Effect of smile behavior
on social evalua-
tions (e.g., perceived
empathy) of virtual peer
counsellors
Lab experiment Peer counselling 38, US empathy, general positivity,
supportiveness, like-
ability, comfort with the
interaction, interaction
satisfaction, and interac-
tion enjoyableness
Social presence, trust
Chattaraman etal. (2012) Evaluation of a virtual
agent that offers search,
navigational and proce-
dural support to older
adults
Lab experiment Online shopping 60, US social presence, perceived
social support, trust,
perceived risk, patronage
intention
Ang etal. (2013) Effects of gesture-based
avatar-mediated commu-
nication vs video-medi-
ated communication
Lab experiment Brainstorming and nego-
tiation
64, UK Perceived satisfaction,
likeability, trust, and intel-
ligence; number of ideas,
quality of ideas
442
T.Teubner, S.Camacho
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Table 1 (continued)
Study (Authors, Year) Focus Method Context Sample (size, origin) Theory/constructs
Pinto etal. (2013) Efficacy of avatar-based
depression self-man-
agement intervention
among young adults
Randomized controlled
trial
Depression self-manage-
ment
28, US Depressive symptoms
Teubner etal. (2014) Effects of avatar
humanization on sharing
behavior
Lab experiment Sharing Economy 216, Germany Social Presence, Privacy
Calculus
Mull etal. (2015) Examining consum-
ers’ perceptions (e.g.,
credibility, homophily)
of using 3D avatars as
salespeople
Survey Online shopping 120, US Credibility, homophily,
attractiveness, and inten-
tion to interact
Ratan and Sah (2015) Effect of avatar customi-
zation (i.e., design-
ing an avatar) and
avatar embodiment
(i.e., perceiving avatar
is incorporated in body
schema) and gender on
post-game behavior
Lab experiment Online game 64, US Stereotype threat theory,
avatar embodiment
Waddell and Ivory (2015) Effect of interaction of
avatars and users fea-
tures on favor responses
Field experiment Online game 2300, North Ameri-
can World, World of
Warcraft
Avatar attractiveness, avatar
sex, user sex, magnitude
of request (i.e., small vs
large favor), compliance
(i.e., agreeing to the favor)
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Photos and Avatars in Micro-Communities
Table 1 (continued)
Study (Authors, Year) Focus Method Context Sample (size, origin) Theory/constructs
Ratan etal. (2016) Examining how avatars
can be integrated to stu-
dents’ communication to
improve their perfor-
mance motivation
Field experiment Education 229, US Avatar type (i.e., actual-self,
ideal-self, superhero-
student), average number
of topics discussed
Canidate and Hart (2017) To identify preferences
for health informa-
tion provider avatars
and how such avatars
compare to seekers’ own
characteristics
Online survey Informational website 1119, US Age, gender, and ethnicity
origin
Gordon etal. (2017) A pilot proof-of-concept
feasibility study for
avatar-assisted therapy
in a virtual environment
Pilot study, interviews
before and after the
treatment
Outpatient substance
abuse treatment
58, US Avatar features: hair, skin,
eye color, facial features,
body type and size, and
clothing
Treatment completion,
urine drug-screen positive
samples, re-arrest infor-
mation
Heyselaar etal. (2017) Examining differences
between human–
computer language
interaction (e.g., with a
human-like avatar) and
human–human language
interaction (i.e., with
a human partner) in
a priming syntactic
activity
Lab experiment Virtual reality Experiment 1: 48;
The Netherlands
Experiment 2: 48;
The Netherlands
Relationship questionnaire
(opinions of partners),
conflict questionnaire
(how participants man-
aged conflict), target
responses (active, passive)
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T.Teubner, S.Camacho
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Table 1 (continued)
Study (Authors, Year) Focus Method Context Sample (size, origin) Theory/constructs
Joo and Kim (2017) Effect of an online game
avatars body shape
(obese vs. normal
weight) and health
behavior (healthy vs.
unhealthy) on users
health behavior (using
exercise machine or eat-
ing high-sugar cookies)
Lab experiment Online game 124, South Korea Exercise behavior, eating
behavior, Body Mass
Index (control)
Teng (2017) Extent to which regarding
an avatar as oneself (i.e.,
avatar identification)
impacts gamers’ con-
tinued intention to play
(i.e., gamer loyalty)
Online survey Online game 1384, Not indicated Social identity theory,
social capital theory / ava-
tar identification (four fac-
tors: feeling during play,
absorption during play,
positive attitude toward
the avatar, importance to
identity), participation
in gaming communities,
social presence, loyalty
Wu and Kraemer (2017) Examining how emotion
in language (i.e., posi-
tive or negative) affects
avatars’ judgment (e.g.,
likeability) and prefer-
ences (e.g., avatar as an
interacting partner)
Online survey Virtual environment 189, US and Amazon
Mechanical Turk (Ama-
zon MTurk)
Choices between a pair of
avatars: (i) avatar they
would prefer to interact
with; (ii) avatar they
would prefer to use for
self-representation; and
(iii) the avatar they attrib-
uted to human control
Variables: likeability
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Photos and Avatars in Micro-Communities
Table 1 (continued)
Study (Authors, Year) Focus Method Context Sample (size, origin) Theory/constructs
Messinger etal. (2019) Analyzing how a persons
avatar differs from the
individual the avatar
represents and how
in-world behavioral
traits are affected by the
relative attractiveness
of the avatar compared
with the real person
Virtual environment Study 1:
167, US
97, Second Life
Study 2: 38, US
Self-enhancement theory,
self-verification theory /
Variables: attractiveness
(avatar vs. real person),
behavioral traits
Yu etal. (2021) To compare a point cloud
reconstruction-based
avatar with a virtual
character-based (3DVC)
avatar in a 3D telepres-
ence system
Lab experiment VR/AR teleconsultation
system
24, Germany Performance at task,
co-presence, telepres-
ence, social presence,
self-location, uncanniness
and eeriness perceptions,
behavior impression (nat-
ural, realistic, synchro-
nous), system usability
scale, fast motion sickness
scale
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T.Teubner, S.Camacho
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figures to (near) photo-realistic representations (e.g., Metas Codec Avatars; Clark
2021; Skarredghost 2022). In addition to that, there exist several further aspects that
should be taken into account:
First, avatars may fall into what has been labeled as the “uncanny valley”
(Cheong 2022; University of Cambridge 2019). This concept refers to a nega-
tive relation between an avatar’s resemblance to a human being and a users
emotional response to it, specifically when the avatar comes very eerily close to
human appearance but can still be identified as artificial. In this range, avatars
evoke feelings of uneasiness, and revulsion. Beyond avatars within digital appli-
cations, examples of the uncanny valley can be found in movies, robotics, and
lifelike dolls.
Second, not only may an avatar affect the behavior of others that encounter it,
but also the user being represented by and/or controling the avatar. Being rep-
resented by an avatar of a certain style or appearance is known to create a back-
coupling, referred to as the Proteus effect (Yee etal. 2009; Yee and Bailenson
2007). The effect refers to people’s tendency to be affected by their digital rep-
resentations (e.g., in video games, on dating sites, or social networks), in a way
that their behavior conforms to common expectations towards the digital repre-
sentation (TechTarget 2014; Yee and Bailenson 2007). Research suggests that
the effect extends into users’ real life with small but fairly consistent effect sizes
(Clark 2020; Ratan etal. 2020). A recent review study indicates that three main
components drive the Proteus effect, namely similarity (i.e., self-identification),
desirability (i.e., wishful identification), and perceived embodiment (Praetorius
and Görlich 2020).
Third, as another boundary condition, it is important to understand not only how
avatars look, but also how and under which restrictions they were created and
assigned to users. Will, for instance, avatars depict the actual user or are they free
to chose any ever so phantasmal identity? How is a potential matching ensured?
In this regard, research indicates that when users select (or are assigned to) ava-
tars that reflect their appearance well, they are less likely to engage in deception
(Galanxhi and Nah 2007; Hooi and Cho 2013). As we will describe in the next
section, the present study makes use of certified avatars, where an independent
third party (i.e., the research team) creates and assigns the avatars based on par-
ticipants’ photographs (as taken right before the experiment). This establishes
that (1) the avatars indeed reflect participants’ appearance and (2) that this link is
reliable and trustworthy.
The avatars used in this study fall into the middle range of a) having a rich set
of features (i.e., hair style and color, head shape, skin tone, accessory, etc.) but b)
being clearly cartoonish and far away from photoreaslism (proportions, no texture,
not even a nose, etc.)—see FiguresA1 and A2 in the Appendix. While the pho-
tos provide a clear and realistic view on the person behind the online identity, the
avatars also strip away quirky features and they appear particularly neat and cute—
keeping a safe distance to “uncanny” representations. We hence leave it as an open-
ended question here how (these specific) avatars will affect outcomes compared to
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photographs. Given the study’s specific setup with high (presumed) avatar likabiltiy
and a credible reflection of user appearance, we believe that avatars may be as effec-
tive as photosgraphs or even surpass them.
3 Method
3.1 Experimental Treatments
To evaluate our hypotheses, we emulate an online micro-community by means of
a 15-period Gift Exchange Experiment (Berninghaus etal. 2008). Building on the
gift exchange model by Akerlof and Yellen (1988), this setting allows to investi-
gate the formation of reciprocity in social exchange (Berninghaus etal. 2008; Güth
etal. 2010). Naturally, such experiments cannot simulate or reproduce actual micro-
communities; they represent stylized and abstracted models of such communities,
capturing the most important structural features.
We employed three different conditions. First, in the profile photos treatment,
participants were represented by an actual photograph of themselves. Second, in the
avatars treatment, participants were represented by an avatar a staff member created
based on the participants photo. Third, participants in the control group were repre-
sented by a default image. Examples for all conditions are provided in AppendixA.
Each participant was exposed to only one of the three conditions (between-subjects
design). Participants were randomly assigned to the treatments and to gender-bal-
anced cohorts of six (3 males, 3 females) and remained in the same cohort for the
entire experiment.
3.2 Experimental Task
Following the design of Berninghaus etal. (2008), in each period, all six partici-
pants i {1, 2, …, 6} of a cohort were endowed with E = 100 units of one out of six
unique resource types. Participants were then able to make transfers to other partici-
pants of their cohort. Thereby, each participant decided (simultaneously) how many
units of their own resource to transfer to each other participant (non-negative inte-
ger values only). The total number of units transferred could not exceed the initial
endowment of E = 100 units. A transfer from participant i to j in period t is denoted
by xij,t. Every transaction xij,t > 0 yielded transaction costs of c = 1 monetary unit
(MU) for the sender (i), representing the (small but positive) effort associate with
the transfer. Therefore, participants could face transaction costs varying between 0
MU (xij,t = 0, ji) and 5 MU (xij,t > 0, j i). After each period, participants thus
held between 0 and 100 units of the six resource types. These were then converted
into monetary units. In order to reflect decreasing marginal utility for each resource,
amounts were converted into monetary units by means of the square root function
(Berninghaus etal. 2008). Participant is payoff for period t is hence given as:
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T.Teubner, S.Camacho
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Given the concave nature of the square root function and the transaction costs,
the overall (i.e., social) optimum corresponds to an even distribution of all resources
among all participants. Since only integer numbers were possible, an allocation
of 17, 17, 17, 17, 16, and 16 represented the optimal approximation, yielding an
average outcome of 19.49 MU per participant and period. Note that the scenario
represents a social dilemma with a unique Nash equilibrium in not transferring any
resources at all. Participants may choose to follow this strategy, yielding a certain
payoff of (at least) 10 MU (from their own resource type). Overall, capturing the
nature of online micro-communities, mutually exchanging resources with others
yields the potential for better outcomes while it also involves 1) the inherent risk of
realizing a loss and 2) the temptation of free riding. Figure1 illustrates this by an
example.
3.3 Procedure
Altogether, 216 subjects participated (108 females, 108 males, average
age = 22.1 years) across the three conditions. Each condition comprised twelve
cohorts with 6 participants per cohort (216 = 3 × 12 × 6). Sessions took about
50–60 min. Participants were recruited from a pool of university students using
ORSEE (Greiner 2015). The experimental interface was implemented using zTree
(Fischbacher 2007). In order to incentivize behavior (Smith 1976), each participants
payoffs from ten randomly selected periods were paid out in cash (1 MU = 0.14
USD; average payoff of 26.2 USD).
After arriving at the lab, participants gave written consent for the use and pro-
cessing of their photograph. Specifically, this included the photos’ use within
the experiment (shown to the five other respective participants in their cohort),
pi,t=
E
ji
xij,t+
ji
xji,tc
ji
1xij,t>
0
Fig. 1 Exemplary illustration of a period outcome
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Photos and Avatars in Micro-Communities
processing for scientific purposes, and use in presentations and publications. The
experimental design and execution adhered to the ethical and procedural guidelines
of the economic lab the study was conducted at.
A research assistant then took each participants photo. Appendix A provides
examples for the profile images used in the three conditions. In the avatars treat-
ment, a staff member created the avatar based on the photo by using a proprietary
tool with the aim of matching characteristic features (e.g., clothing, eye color, hair-
style and color, head shape). This process was conducted while participants were
settling into the lab (i.e., within a few minutes) so that the participant-specific ava-
tars were available upon the start of the actual experiment. A pre-recorded audio
version of the experiment instructions was played, and a written version was handed
out (Appendix B). Participants then answered twelve quiz questions testing their
comprehension of procedure and payoff rules. After every participant had success-
fully completed the quiz, the actual experiment started.
3.4 Measures
Participants repeatedly decided whether, how much, and with whom to share their
resources. At the network level, we analyze the emerging graph of connections for
each cohort in terms of network value, density, and reciprocity. At the individual
level, we investigate each transfer xij,t from participant i to another participant j in a
given period t. Further, we consider each participants total volume of transfers, as
well as the number of recipients they sent resources to. As control variables, we use
participants’ gender and risk attitude (Holt and Laury 2002). Appendix C provides
an overview of definitions and summary statistics for all measures.
Importantly, it is a well-established result in the behavioral sciences that strategic
interaction with a fixed time horizon (here: 15 periods) yields so-called “endgame
effects” (Berninghaus etal. 2008; Bolton etal. 2004). Thereby, the final few periods
usually exhibit a markedly different pattern of behavior (e.g., collapse of collabo-
ration). Hence, we follow the common practice of excluding the last three periods
from analysis and focus on the first twelve periods.1
4 Results
4.1 Hypotheses Testing
To evaluate our hypotheses, we consider (1) realized overall value (as compared to
the theoretical upper and lower bounds, normalized to the interval [0, 1]), (2) the
underlying network’s density, and (3) overall reciprocity within the network. Fig-
ure2 summarizes these measures by treatment (left) and over time (right). To assess
1 Hence, our dataset includes 432 observations at the cohort level (3 treatments × 12 cohorts × 12 peri-
ods), 2,592 observations at the participant level (3 treatments × 12 cohorts × 12 periods × 6 participants),
and 12,960 observations at the transfer level (3 treatments × 12 cohorts × 12 periods × 6 participants × 5
respective other participants).
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T.Teubner, S.Camacho
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the displayed treatment differences and time trends statistically, we use a set of panel
regressions that consider the dependent variables at the cohort level (see Table2).
The regression models account for the dynamics of network formation over time by
controlling for period effects (coded from 0 to 11) and treatment-period interactions.
As hypothesized, photos (b = 0.131, p < .05; H1a supported) and avatars
(b = 0.099, p < .10; H2a supported) have a positive overall effect on network value.2
Value also increases over time for photos but not for avatars or the control condi-
tion (photos: b = 0.004, p < .05; avatars: b = 0.003, p = .169; control: b = − 0.001,
p = .262). The results on network density and reciprocity provide further insight
into how specifically value is created within the network. Overall, the availability
.50
.60
.70
.80
.90
Control Avatars Photos
Network Density
Treatment
.50
.60
.70
.80
.90
12345678910 11 12 13 14 15
Photos AvatarsControl
endgame
Period
.50
.60
.70
.80
.90
ControlAvatars Photos
Network Reciprocity
Treatment
.50
.60
.70
.80
.90
123456789101112131415
Photos AvatarsControl endgame
Period
.50
.60
.70
.80
.90
ControlAvatars Photos
Treatment
Network Value
.50
.60
.70
.80
.90
123456789101112131415
Photos AvatarsControl
Period
endgame
Fig. 2 Network value creation, density, and reciprocity across treatments and over the course of the
experiment
2 Note that the treatment effect for avatars is only marginally significant (p < .10). However, the analysis
reported in Table2 is conducted at the cohort level and hence relatively conservative.
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Photos and Avatars in Micro-Communities
Table 2 Panel regression models for network value, density, and reciprocity (random effects; cohort level)
Standard errors in parentheses. ***p < .001; **p < .01; *p < .05; +p < .10; Significant coefficients highlighted in bold face
(a) Network value (b) Network density (c) Network reciprocity
Treatment: Photos (H1).131*(.052) .108* (.053) .114* (.056) .099 (.058)+.120* (.053) .100+(.059)
Treatment: Avatars (H2).099+ (.052) .085 (.053) .073 (.056) .062 (.058) .048 (.053) .039 (.059)
Period (0–11) .001 (.001) −.001 (.001) −.006*** (.001) −.008*** (.002) .013*** (.002) .011** (.003)
Photos × Period .004* (.002) .003 (.003) .004 (.005)
Avatars × Period .003 (.002) .002 (.003) .002 (.005)
Constant .630*** (.037) .642*** (.038) .696*** (.040) .705*** (.041) .611*** (.039) .621*** (.042)
N 432 432 432 432 432 432
R2.018 .030 .084 .086 .104 .105
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T.Teubner, S.Camacho
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of photos has positive effects on network density (b = 0.114, p < .05; H1b supported)
and reciprocity (b = 0.120, p < .05; H1c supported). In contrast, the effects of ava-
tars on network density (b = 0.073, p = .192; H2b not supported) and reciprocity
(b = 0.048, p = .368; H2c not supported) are positive but insignificant.
Result 1a The availability of profile photos yields higher network value (H1a),
higher density (H1b), and higher reciprocity (H1c) in the micro-community than the
control condition with default images. By contrast, the availability of avatars only
yields marginally higher network value (H2a), while density (H2b) and reciprocity
(H2c) are not significantly different than in the control condition.
Moreover, we do not observe any statistical differences between photos and ava-
tars on network level (i.e., with regard to network value, density, or reciprocity).
Result 1b Photos and avatars yield similar results in terms of network value, density,
and reciprocity.
Interestingly, in the first periods, there emerge relatively dense networks (i.e.,
high number of ties). Then, however—and irrespective of treatment condition—
density decreases and reciprocity increases over time, that is, the network structure
shifts towards fewer but stronger links.
Result 1c While network value in the micro-community is stable over time, network
density decreases and reciprocity increases over time in all three conditions (photos,
avatars, control).
These results illustrate how participants form transfer relations within their
micro-community. Starting out from a broader “shotgun” approach (i.e., transferring
small(er) amounts to many others), they adapt their behavior towards larger transfers
to fewer recipients over time, where the enduring relations are also more likely to be
mutual. As can be seen from the treatment-time interaction coefficients in Table2
and Fig.2, this dynamic is consistent across treatment conditions.
4.2 Transfer Strategies
Next, to shed more light on the underlying behavior of network formation, we
investigate participants’ transfers in more detail. Specifically, we consider (1) total
transfer volumes, (2) number of recipients, and (3) average amounts transferred per
recipient. This analysis allows us to discern strategies (e.g., “shotgun” approaches
vs. targeted transfers to specific recipients). Table3 shows the results from a set of
panel regressions for these measures, considering models with and without treat-
ment-period interactions.
First, photos (b = 15.688, p < .001) and avatars (b = 13.128, p < .001) exhibit
higher overall transfer volumes than the control condition. There also exists an
increase over time (b = 0.495, p < .001). However, as can be seen in the second model
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Photos and Avatars in Micro-Communities
specification, this is primarily driven by the photo treatment (slope = 0.180 + 0.649,
p < .001). Second, compared to the control condition, participants transfer resources
to a higher number of recipients in the photo condition (b = 0.568, p < .01) and in
the avatar condition (b = 0.371, p < .05). Further, irrespective of treatment condition,
this number decreases over time (b = –0.032, p < .001). Finally, the interplay of these
findings (increasing overall transfer volume and decreasing number of recipients) is
then also reflected in the average amount sent per recipient. Here, both treatments
(as compared to the control condition) yield higher amounts, and there is a marked
positive time effect (b = 0.231, p < .001).
These results indicate that profile images (either photos or avatars) were indeed
utilized as a cue to develop an impression of potential exchange partners that, in
turn, contributed to facilitate resource transfers.3 Moreover, we considered risk aver-
sion as a control variable and found it to be associated with lower overall transfer
Table 3 Panel regression models for individual transfers (random effects; participant level)
Standard errors in parentheses.***p < .001; **p < .01; * < .05; +p < .10; significant coefficients high-
lighted in bold face
Total transfer volume Number of recipients Average transfer /
recipient
Treatment: Photos 15.688*** 12.117** .568** .489* 2.822*** 2.740**
(3.561) (3.698) (.185) (.197) (.792) (.849)
Treatment: Avatars 13.128*** 11.501** .371* .317 3.023*** 2.855***
(3.562) (3.699) (.185) (.197) (.792) (.849)
Period (0–11) .495*** .180 −.032*** −.040*** .231*** .216***
(.074) (.128) (.005) (.009) (.023) (.039)
Photos × Period .649*** .014 .015
(.181) (.012) (.055)
Avatars × Period .296 .010 .031
(.181) (.012) (.055)
Risk Aversion −1.931+−1.931+−.035 −.035 −.517* −.517*
(1.042) (1.042) (.054) (.054) (.232) (.232)
Gender: Female −7.679** −7.679** −.371* −.371* −.270 −.270
(2.920) (2.920) (.152) (.152) (.649) (.649)
Constant 55.859*** 42.406*** 3.870*** 3.524*** 14.029*** 10.939***
(6.662) (2.667) (.347) (.140) (1.484) (.604)
N 2592 2592 2592 2592 2592 2592
R2.029 .032 .022 .020 .047 .047
3 To confirm that reciprocity in fact acts as a driver and sustainer of exchange relations, we conducted
a complementary analysis on the individual transfers at a peer-to-peer level (Appendix D). Indeed, the
amount that was received from the respective other participant in the previous period (t–1) predicts ones
transfer in the current period (t). This analysis also shows that female participants tend to transfer less
(b = -1.142, p < .001) while neither male nor female subjects receive systematically higher transfers in
general when accounting for reciprocity (b = -.053, p = .616). Sender-receiver gender interactions and
gender identity/difference do not reveal any further effects.
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T.Teubner, S.Camacho
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volumes (b = − 1.931, p < .10), an effect that is primarily driven by the fact that
risk averse subjects tend to make lower average transfers per recipient (b = −0.517,
p < .05), rather than to fewer recipients (b = −0.035, p = .518). Additionally, female
participants also tend to transfer less overall (b = −7.679, p < .01) where this effect
is primarily driven by the lower number of recipients (b = − 0.371, p < .05) rather
than by lower average transfers (b = −0.270, p = .678).
Result 2a The availability of profile images (photos, avatars) yields higher total
transfer volumes, higher number of recipients, and higher transfers per recipient than
the control condition.
Result 2b Over time, the number of recipients decreases while the average transfer
per recipient increases—regardless of the treatment condition.
4.3 Effect Decomposition andNetwork Value
To better understand how profile images affect network formation and value over
time, we now differentiate between cross-treatment differences (in the first period)
and time effects (within a fixed treatment condition). As main dependent variables,
we focus on the average number of recipients participants engage with and the aver-
age amounts transferred to those recipients (x- and y-axis in Fig.3a, b). The total
transfer volumes can be approximated by the product of the two factors (i.e., area of
the resulting rectangle). This allows attributing and hence decomposing the overall
differences into the two underlying partial effects. Figure3a, b illustrate this and
include levels of equal network value (dotted grey lines).
Treatment effects (first period) Focusing on the first period, Fig.3a allows to
discern an immediate volume effect (“transfer more resources to the same peo-
ple”) and a spread effect (“transfer resources to more people”) of profile images
Fig. 3 Effect decomposition with a treatment differences (first period) and b within-treatment time
effects. Curved lines represent iso-value levels (v) where cost c = 1 MU and endowment E = 100 MU.
Note that the iso-value levels assume identical transfers for each subject as well as infinitesimal division
while the plotted data is based on actual (integer) numbers of recipients and transferred amounts
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Photos and Avatars in Micro-Communities
regarding transfer volumes and how these translate into network value. Further,
there is an interplay surplus (emerging from the interaction of the two). Com-
pared to the control condition, participants in the photo treatment both shared
resources with a higher number of other participants (spread effect) and trans-
ferred more to each of them (volume effect). Considering the difference between
the photo and avatar conditions, it becomes evident that the photos’ entire surplus
is grounded in the spread effect. In other words, while the amounts transferred per
person are virtually identical, using photographs (rather than avatars) increases
the number of initial recipients—and hence the overall volume of resources trans-
ferred down the line. Again, these results corroborate the usefulness of profile
images as visual cues to engender initial trust towards potential interaction part-
ners and to engage in exchanges with them. Table4 summarizes all partial and
overall relative effects for the three treatment contrasts (photos vs. control, ava-
tars vs. control, and photos vs. avatars).
Result 3 While the average transfer per recipient is comparable between photos
and avatars, photos yield a higher number of recipients (spread effect) and hence a
higher level of value in the first period.
Time effects (within-treatment) Building on the treatment effects in the first
period, Fig.3b illustrates the dynamics of network formation that occur over the
course of the twelve periods. We can discern marked time-effects in how par-
ticipants adapt their behavior. When comparing the first period to the following
values, notice that over time, participants transfer resources to fewer people but
with higher amounts per recipient. This transition can be described as a “cut and
reinforce” strategy, where participants cut off non-functioning (i.e., low reciproc-
ity) relations and reinforce flourishing relations. Importantly, this behavior can be
observed in all three treatment conditions—with varying effect sizes.
Considering the described two-fold alteration of the rectangles allows attribut-
ing the relative changes of transfer volumes to the “cut” and “reinforce” portions.
As can be seen in Table5, the surplus due to reinforcing generally outweighs the
decline due to cutting (reinforce >|cut|). Moreover, the overall relative increase in
transfers is highest for the avatars condition (with only little cutting and much rein-
forcing), while behavior in the control condition is more governed by cutting, result-
ing in a lower overall effect. Also, in comparison to the treatment differences in the
first period (i.e., an area increase of up to 38.7% compared to control; see Table4),
the within-treatment time effects from first to last period are smaller (photos: 10.2%,
avatars: 16.2%; see Table 5). Importantly, the transition of the two transfer com-
ponents (number of recipients, average transfer per recipient) takes place along the
iso-value lines over time. Hence, the overall value levels remain stable by and large
(even though overall transfer volumes increase slightly).
Result 4 Over time, participants interact with fewer participants (“cut”) and transfer
higher amounts in reciprocal relations (“reinforce”).
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Table 4 Treatment effect decomposition of total transfers (approximated by the product of average amount transferred and number of recipients; corresponds to rectangle
areas in Fig.3a
Treatment Comparison Volume effect (Δ avg. transfer) Spread effect (Δ avg. recipi-
ents)
Interplay surplus Total effect (Δ area) ΔValue (%)
Control vs. Photo 10.6712.86 + 20.5% 3.584.13 + 15.1% + 3.1% 38.2553.04 + 38.7% + 20.6
Control vs. Avatar 10.6712.91 + 20.9% 3.583.79 + 5.8% + 1.2% 38.2548.94 + 27.9% + 15.7
Avatar vs. Photo 12.9112.86 −0.4% 3.794.13 + 8.8% < 0.1% 48.9453.04 + 8.4% + 4.3
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5 Discussion
The emergence of exchange relations in networks is complex in nature. In this study,
we employed a multi-period experiment to study the role of photos and avatars for
dynamic network formation in micro-communities. We observe systematic use of
cut-and-reinforce strategies, where people shift towards fewer but stronger (and
more reciprocal) relations. While this behavior is not contingent of user representa-
tion, the availability of photos/avatars leads to higher network value, density, and
reciprocity as it induces more and higher transfers right from the get-go—and this
effect persists over time. Note that there only occur smaller differences between pho-
tos and avatars, suggesting that the effectiveness of photos in conveying social cues
can, in principle, also be achieved by avatars (taking into the account the specific
boundary conditions and design).
5.1 Theoretical Contributions
Micro-communities facilitate value creation through technology-mediated social
exchange. Our study sheds light on the formation of reciprocal relations over time,
and how these relations contribute to network formation and value creation. As pos-
ited by SET, the prospect of net benefits plays a pivotal role for users to engage
in social exchange relations (Blau 1967). Moreover, SET assumes the existence of
relationships in the long run as opposed to one-off interactions (Kim etal. 2018;
Molm 1997). By considering the dynamics of such exchanges over time, the present
study contributes to SET by empirically illustrating and differentiating two inherent
mechanisms for how such relations unfold. Specifically, we illustrate how users (1)
engage in a higher number of reciprocal exchange relations and (2) are willing to
contribute more strongly to those relations when profile images (photos or avatars)
are available. We demonstrate that the decision to “reach out” to others is taken early
on and affects exchanges from there on. This demonstrates that user representation
is a crucial factor for online network formation that needs to be taken into account.
But why is that? We argue that the facilitating role of profile images links back
to extant literature on affective information processing. Evolutionary, the abil-
ity to process social cues in human faces has been vital for humans to engage in
rewarding social interactions. As such, the human brain has evolved to readily pro-
cess human faces and these facial processing abilities are innate, involuntary, and
Table 5 Time effect decomposition of total transfers (approximated by rectangle areas in Fig.3b
Treatment Period Cut effect (Δ area) Reinforce effect (Δ
area)
Total effect (Δ
area)
ΔValue (%)
1 12
Control 38.3 41.8 −5.19 −13.6% + 8.72 + 22.8% + 3.53 + 9.2% −3.2
Avatar 48.9 56.9 −3.76 −7.7% + 11.72 + 23.9% + 7.95 + 16.2% + 5.0
Photo 53.0 58.5 −5.89 −11.1% + 11.30 + 21.3% + 5.41 + 10.2% + 1.2
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T.Teubner, S.Camacho
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fast (Kanwisher etal. 1997). Because online communities lack actual face-to-face
encounters, profile imagery represents an essential cue for facial processing (Bente
etal. 2012; Riedl etal. 2014). Hence, the availability of profile images enables users
to draw on their innate capacity to process human faces and, based on this, form
impressions and engender trust (Ert etal. 2016; Riedl etal. 2014). While previous
research has shown that this process can facilitate trust in individual one-to-one rela-
tions (Bente etal. 2012; Ert etal. 2016), our results provide insights into how these
processes emerge when the user can engage in multiple relations and when these
relations are carried out over time.
One intriguing result in this regard relates to the similarities and differences in
the effects of avatars and photos. The human brain continuously draws significance
from random and vague visual stimuli. Known as pareidolia, this process allows
users to “see faces where actual faces do not exist” (Hong et al. 2014, p. 352).
Thereby, the brain area that is dedicated to the processing of faces is also involved
in the processing of avatars (Riedl etal. 2014; Tong etal. 2000). Previous research
found that avatars can function as a potent social cue in user interface design (Lee
etal. 2009; Nowak and Biocca 2003; Qiu and Benbasat 2005). Applied to the con-
text of micro-communities, our results show that photos and avatars yield very simi-
lar outcomes. On one hand, this can be seen as surprising as the here-used avatars
only convey a highly stylized image of the human behind them. On the other hand,
however, avatars in fact trigger the same neurological processes and are interpreted
very much like actual faces. With this in mind, it is important to note that all avatars
used in our study have a friendly appearance and participants know that they can
be relied upon. Hence, some basic requirements for trusting behavior are met (e.g.,
credibility, perceptions of benevolence). This supports past research that indicates
that when an avatar resembles the person behind it closely, it is more likely to elicit
neural and behavioral responses similar to those evoked by the person themselves
(de Borst and de Gelder 2015; Fysh etal. 2022). Drilling down into the individual
transactions allows discerning how these differences come about and play out over
time. While the average transferred amounts per recipient are almost identical for
photos and avatars, the number of recipients is smaller in the avatar conditions. In
other words, users in the avatar condition engage in fewer social relations but the
strength of those relations is comparable to those of photos. One interpretation of
this would be to think of photos as guiding attention towards the micro-community
as a whole, whereas with avatars, people will be more likely to focus on fewer indi-
viduals. However, other approaches are well-conceivable: Most naturally, artificial
images may simply be not perceived as trustworthy as actual photographs. Also,
some avatars may convey “veto-features” that are not seen in photographs (although
the opposite is actually more likely, as avatars smoothen out a lot of the more strik-
ing facial features). Overall, this extends literature analyzing avatars’ influence on
users’ behavior. Previous research has focused mainly on user perceptions of avatar
features (e.g., Ang etal. 2013; Heyselaar etal. 2017; Wu and Kraemer 2017; Yu
etal. 2021), avatars’ behavior and performance (e.g., online worlds, online games;
Teng 2017; Waddell and Ivory 2015; Yu etal. 2021), and health behaviors (e.g.,
Gordon etal. 2017; Joo and Kim 2017; Pinto etal. 2013). Results from our study
indicate that avatars can have a positive influence on online behaviors (i.e., exchange
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Photos and Avatars in Micro-Communities
of resources) in the complete absence of communication between interacting part-
ners (e.g., negotiating or messaging).
Finally, our approach allows for the investigation of community formation over
time. Existing research on profile imagery commonly employs snapshot approaches,
focusing on the impact of photos (and/or avatars) on one-to-one interactions at a spe-
cific point in time (Ert etal. 2016; Qiu etal. 2018). Complementing and extending
this work, we provide insights into how participants adapt their behavior over time
and how these effects shape network formation. Several interesting patterns appear.
First, we observe a consolidation of social exchange relations (“cut and reinforce”)
which occurs regardless of treatment condition. For exposition, Fig.4 illustrates this
“cut-and-reinforce” graphically for one cohort from the avatars condition.
The role of reciprocity appears to be equally important across all treatment condi-
tions. This consolidation of network relations reflects the formation of dense clus-
ters inside networks for the flow of resources, which has previously been identified
in the literature (Levine and Kurzban 2006). In the same vein, reciprocity has a
predominant role over other characteristics (e.g., gender) for the consolidation of
exchange relations, also in line with previous research (Plickert etal. 2007). Partici-
pants developed interdependent relationships with others through the exchange of
resources. Their assessment of reciprocity led them to cut those relationships per-
ceived as unbalanced (in terms of resources transferred and received) and to rein-
force those with higher perceptions of equity, in line with the theoretical assump-
tions and claims of SET (Fox and Gambino 2021; Kelley and Thibaut 1978).
Ultimately, the importance of reciprocity in this study corresponds to one of the
major tenets of SET, positing that such relationships “evolve over time into trusting,
loyal, and mutual commitments” (Cropanzano and Mitchell 2005, p. 875).
The evolving relationships evidenced in this study reflect the developmental
approach to interpersonal communication supported by Miller (1978). Participants
started to exchange resources with others in their cohort in an impersonal and trans-
actional manner, likely assessing others based on cultural and sociological informa-
tion. Over time, they developed more interpersonal interactions; in such cases, they
were likely able to predict, or make attributions about, the behaviors of others. The
assessment of others based on their behavior facilitated participants’ decision to
focus on reciprocal interactions.
Fig. 4 Example of network formation; edge width shows transfer volume; periods 1 to 12
460
T.Teubner, S.Camacho
1 3
5.2 Practical Contributions
The results of our study have direct implications for practitioners. Even though
online communities operate in a virtual space, the “rules” of how humans draw
meaning from social cues and decide to engage in social exchange readily apply. The
availability of profile imagery (either photos or avatars) plays a critical role for net-
work formation. Whenever there are concerns about user privacy or discrimination,
avatars may be advantageous.
A second implication relates to the dynamics of network formation. One striking
result here is that much of the subsequent behavior is determined already in the very
first period. Online communities should hence attempt guide their members early
on, for instance, to contact others, complete their profile, upload a photo, and sup-
port this by onboarding and scaffolding processes. In the initial stages, we observe
shotgun” approaches, that is, transferring smaller amounts to many other people.
Over time, as people cut and reinforce, reciprocal relations form. Platform operators
may devise strategies to support this process in a way that (1) a higher amount of the
initial links is retained (e.g., by emphasizing the importance of reciprocity) and (2)
users are supported in sustaining rewarding relations. For instance, the user inter-
face may support transaction partners in “stabilizing” exchange relations by empha-
sizing the transaction history over time. This may encourage users to maintain and
strengthen relations in the long run.
A third implication relates to behaviors in online communities. Results from this
study indicate that individuals develop more reciprocal relations over time in con-
texts with profile imagery available, even in the absence of other forms of communi-
cation. This might prove useful not only for online communities attempting to mon-
etize user interactions (e.g., through gift giving), but also for organizational social
networking sites where geographical dispersed employees might need to develop
collaborative tasks (e.g., co-design of products) and work together in multiple pro-
jects over time.
5.3 Limitations andFuture Work
Naturally, this study is not without limitations. Generally speaking, users in a given
micro-community will not be represented homogenously but will usually have dif-
ferent profile image types. Scenarios in which only some users pick avatars while
others are represented by photos or default images would also allow for a more spe-
cific attribution of value. Vivid user representation could be more effective for those
users who employ it if only few do so (rather than when everyone does). In this
sense, our results may even under-estimate the power of photos and avatars.
Another limitation roots in the experiment design and how avatars are created
and assigned. Previous literature indicates that avatars might play the role of an
“actual mask”, where individuals can hide behind and engage in deceptive behaviors
(Galanxhi and Nah 2007; Hooi and Cho 2013). Thus, giving participants the option
to choose their own avatars (not necessarily reflecting their appearance) might have
461
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Photos and Avatars in Micro-Communities
resulted in their engagement in different behaviors (e.g., free riding, tricking others).
However, it is worth remembering that the majority of people tends to select ava-
tars that share some similarities with them (e.g., age, height, and weight; Messinger
etal. 2019). Future studies may allow the free choice of profile imagery. In addition,
a voluntary certification process (on behalft of the platform) may issue a confirma-
tion for the employed avatar—based on a comparison of face, identification docu-
ment, and the avatar (similar as being used for KYC processes).
A third limitation is related to the low degree of variance explained by the regres-
sion models (i.e., low R-squared values). This is not uncommon in experimental
studies, where there might be some unobserved situational drivers of behavior (e.g.,
mood, distractions). To account for other factors that might explain the variance of
our outcome variables, future research may explore the influence of specific user
perceptions of others’ profile images (e.g., in terms of perceived similarity, attrac-
tiveness, etc.). Another avenue to pursue is to analyze what occurs in more immer-
sive environments (e.g., virtual worlds, metaverse applications), by incorporating the
concept of space (within which users could move) and place (i.e., a bounded space
imbued with meaning) (Saunders etal. 2011). Alternatively, the effect of using more
realistic and/or dynamic avatars in such environments should be explored, where
animated avatars could include facial expressions (e.g., rising eyebrows, smiling) or
other human behaviors (e.g., talking, providing non-verbal feedback).
6 Concluding Note
Social cues and reciprocity play fundamental roles for the creation of value in online
communities. This study sheds light on how profile images facilitate the formation
of individual transactions and the community. Hence, beyond analyzing individual
transactions or snapshots in time, we provide insights into how photos and avatars
facilitate the formation of online communities over the course of repeated interac-
tions. We demonstrate that users engage in a higher number of reciprocal exchanges
and are willing to contribute more strongly to those relations when profile images
are available. In view of their potential to foster social exchange, avatars may be
considered as a promising alternative to actual photographs, for instance, when user
privacy is a concern.
Supplementary Information The online version contains supplementary material available at https:// doi.
org/ 10. 1007/ s10726- 023- 09814-4.
Acknowledgement We thank Christoph Buring and Marc T. P. Adam for their invaluable support during
this research project.
Funding Open Access funding enabled and organized by Projekt DEAL.
Declarations
Conflict of interest The authors declare that they have no conflict of interest.
462
T.Teubner, S.Camacho
1 3
Open Access This article is licensed under a Creative Commons Attribution 4.0 International License,
which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as
you give appropriate credit to the original author(s) and the source, provide a link to the Creative Com-
mons licence, and indicate if changes were made. The images or other third party material in this article
are included in the articles Creative Commons licence, unless indicated otherwise in a credit line to the
material. If material is not included in the articles Creative Commons licence and your intended use is
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ses/ by/4. 0/.
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