Invites you to a

Microeconomics Theory seminar presented by

Yves Zenou

(Monash University)

Toward a General Theory of Peer Effects

Co-authors:

Vincent Boucher – University of Laval, Canada

Michelle Rendall – Monash University

Philip Ushchev – National Research University, Belgium

Monday 6 March 2023

4.00pm – 5.00pm

Via: Zoom Meeting 

Abstract: There is substantial empirical evidence showing that peer effects matter in many activities. The workhorse model in empirical work on peer effects is the linear-in-means (LIM) model, whereby it is assumed that agents are linearly affected by the mean action of their peers. We develop a new general model of peer effects that relaxes the assumptions of linearity and mean peer behavior and that encompasses the spillover, conformist model, and   LIM model as special cases.  Then, using data on adolescent activities in the U.S., we structurally estimate this model. We find that for many activities, individuals do not behave according to the LIM model. We run some counterfactual policies and show that imposing the mean action as an individual social norm is misleading and leads to incorrect policy implications.

For further information contact: Microeconomics Theory seminar series coordinators Dr Mengke Wang (mengke.wang@sydney.edu.au) & Dr Mert Kimya (mert.kimya@sydney.edu.au)

For all upcoming seminars in School of Economics see Our events and Calendar