Confidence Modulates the Conformity Behavior of the Investors and Neural Responses of Social Influence in Crowdfunding

The decision about whether to invest can be affected by the choices or opinions of others known as a form of social influence. People make decisions with fluctuating confidence, which plays an important role in the decision process. However, it remains a fair amount of confusion regarding the effect of confidence on the social influence as well as the underlying neural mechanism. The current study applied a willingness-to-invest task with the event-related potentials method to examine the behavioral and neural manifestations of social influence and its interaction with confidence in the context of crowdfunding investment. The behavioral results demonstrate that the conformity tendency of the people increased when their willingness-to-invest deviated far from the group. Besides, when the people felt less confident about their initial judgment, they were more likely to follow the herd. In conjunction with the behavioral findings, the neural results of the social information processing indicate different susceptibilities to small and big conflicts between the own willingness of the people and the group, with small conflict evoked less negative feedback-related negativity (FRN) and more positive late positive potential (LPP). Moreover, confidence only modulated the later neural processing by eliciting larger LPP in the low confidence, implying more reliance on social information. These results corroborate previous findings regarding the conformity effect and its neural mechanism in investment decision and meanwhile extend the existing works of literature through providing behavioral and neural evidence to the effect of confidence on the social influence in the crowdfunding marketplace.