Join the club? Peer effects on information value perception

While it is widely recognized that value perception increases when individuals engage in making physical objects, the impact of peer presence on value perception during production or consumption has not been studied. Peer production is prevalent for information products, which are the focus of the present study. Most research to date has focused on value as perceived by consumers, while consumers are increasingly involved in online processes of information production. Information, being intangible and experiential, is a unique type of good. This study places participants in the position of producing or consuming information in order to assess effects of peer group size on value perceptions. Six hundred and fifty one participants took part in 16 information consumption and production experiments. Consumers read information and producers created the same information. Consumers' willingness‐to‐pay and producers' willingness‐to‐accept payment were measured before or after peer consumption and production. Results indicate that value perception is highest when participants consume information individually, declining in small and medium‐sized groups and growing in mass consumption. Generally, post‐consumption values are higher. In production, point of measurement is cardinal. Before production, value perceived individually is lowest, however, having experienced peer production, individuals ascribe the highest value to self‐production. Value perceptions in massive groups converge.