The Impact of Facebook on Social Comparison and Happiness: Evidence from a Natural Experiment

52 Pages Posted: 13 Feb 2017 Last revised: 17 Feb 2017

Ayala Arad

Tel Aviv University - Coller School of Management

Ohad Barzilay

Tel Aviv University - Coller School of Management

Maayan Perchick

Tel Aviv University - Coller School of Management

Date Written: February 13, 2017

Abstract

The ubiquity of Facebook in modern life compels us to study its effects on well-being. We study a unique sample of users and non-users in a security-related organization, where Facebook usage was manipulated by an organizational policy change, initially banning Facebook altogether and later differentially restricting its usage. Thus, the assignment to the group of non-users was circumstantial rather than due to a-priori personal characteristics, which makes it possible to identify Facebook's impact on social comparison and happiness. We find that Facebook usage increases users' engagement in social comparison and consequently decreases their happiness. Social comparison mediates the effect of Facebook on happiness, but only for the younger half of our sample and only for those who believe that others have many more positive experiences than they do. Surprisingly, we find that Facebook does not cause users to overestimate the frequency of their friends' positive experiences.

Keywords: Facebook, happiness, economics of information systems, information and communication technologies, social comparison, natural experiment, moderated mediation model, social networks

Suggested Citation

Arad, Ayala and Barzilay, Ohad and Perchick, Maayan, The Impact of Facebook on Social Comparison and Happiness: Evidence from a Natural Experiment (February 13, 2017). Available at SSRN: https://ssrn.com/abstract=2916158

Ayala Arad

Tel Aviv University - Coller School of Management ( email )

Tel Aviv
Israel

HOME PAGE: http://www.tau.ac.il/~aradayal/

Ohad Barzilay (Contact Author)

Tel Aviv University - Coller School of Management ( email )

Tel Aviv
Israel

Maayan Perchick

Tel Aviv University - Coller School of Management ( email )

Tel Aviv
Israel

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