The information cocoon paradox: fostering unity or fueling divergence?

Abstract

In today’s digital world, the inevitable phenomenon of information cocoons profoundly impacts individual and group decision-making. Although existing research has somewhat explored information cocoons in social media and politics, it lacks depth and direct evidence. This study focuses on the e-commerce environment, which differs significantly from social media and political contexts. We examine how information cocoons form among consumers in e-commerce and explore their influence on group consensus and division through a multimethod research design and simulation analysis. Key findings reveal that AI-driven recommendations strengthen the link between individual preferences and information cocoon formation. Information cocoon has dual effects on the consumer group; that is, it gathers the consensus of the members of the group and widens the differences between different groups. Simulation results illustrate the dynamics of these processes, providing insights into both consensus-building within groups and divergence across groups. Our study contributes by providing visual and direct evidence on the impact of information cocoons on group attitudes in e-commerce contexts, thereby expanding the external validity of the original theory. This has significant implications for academia and policymakers seeking to foster a more inclusive and diverse social environment. Moreover, it is crucial for developing strategies to optimize the information environment in e-commerce scenarios to fully make use of information cocoons.