
Microeconomics Theory Seminar series | Toward a General Theory of Peer Effects by Yves Zenou
Invites you to a
Microeconomics Theory seminar presented by
(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)
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