Consumers’ purchase decisions can be influenced by others’ opinions, i.e., word-of-mouth (WOM), and/or others’ actions, i.e., observational learning. While information technologies are creating increasing opportunities for firms to facilitate/manage these two types of social interaction,...

Networks and the embedded relationships are critical determinants of how people communicate and form beliefs. The explosion of social media has significantly increased the scope and impact of social learning among consumers. This paper studies observational learning in networks of friends versus...