Take Action

Home | Faculty & Research Overview | Research

Research Details

Structural balance emerges and explains performance in risky decision-making, Nature Communications

Abstract

Polarization affects many forms of social organization. A key issue focuses on which affective relationships are prone to change and how their change relates to performance. In this study, we analyze a financial institutional over a two-year period that employed 66 day traders, focusing on links between changes in affective relations and trading performance. Traders’ affective relations were inferred from their IMs (>2 million messages) and trading performance was measured from profit and loss statements (>1 million trades). Here, we find that triads of relationships, the building blocks of larger social structures, have a propensity towards affective balance, but one unbalanced configuration resists change. Further, balance is positively related to performance. Traders with balanced networks have the “hot hand”, showing streaks of high performance. Research implications focus on how changes in polarization relate to performance and polarized states can depolarize.

Type

Article

Author(s)

Omid Askarisichani, Jacqueline Ng Lane, Francesco Bullo, Noah E. Friedkin, Singh K. Ambuj, Brian Uzzi

Date Published

2019

Citations

Askarisichani, Omid, Jacqueline Ng Lane, Francesco Bullo, Noah E. Friedkin, Singh K. Ambuj, and Brian Uzzi. 2019. Structural balance emerges and explains performance in risky decision-making. Nature Communications.

LINK
KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action