Leonardo Bursztyn|Florian Ederer|Bruno Ferman|Noam Yuchtman|Sushil Bikhchandani|Aislinn Bohren|Arun G. Chandrasekhar|Shawn Cole|Raquel Figueiredo|Fred Finan|Uri Gneezy|Dean Karlan|Navin Kartik|Larry Katz|Peter Koudijs|Kory Kroft|Nicola Lacetera|David Laibson|Edward E. Leamer|Paula Leslie|Annamaria Lusardi|Kristóf Madarász|Gustavo Manso|Ted Miguel|Kris James Mitchener|Adair Morse|Paul Niehaus|Andrew J. Oswald|Yosef Stein|Andrei Shleifer|Ivo Welch
Understanding Mechanisms Underlying Peer Effects: Evidence From a Field Experiment on Financial Decisions
UCLA Health|Yale University|University of California, Berkeley|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro|Moscow Institute of Thermal Technology|Pontifical Catholic University of Rio de Janeiro
using highstakes field experiment conducted financial brokerage implement novel design separately identify two channels social influence financial decisions widely studied theoreticallywhen someone purchases asset peers may also want purchase learn choice social learning possession asset directly affects others utility owning asset social utilitywe randomize whether one member peer pair chose purchase asset choice implemented thus randomizing ability possess assetthen randomize whether second member pair 1 receives information first member 2 informed first members desire purchase asset result randomization determined possessionthis allows us estimate effects learning plus possession learning alone relative information control groupwe find social learning social utility channels statistically economically significant effects investment decisionsevidence followup survey reveals social learning effects greatest first second investor financially sophisticated financially unsophisticated investors report updating beliefs asset quality learning peers revealed preference report motivations consistent keeping joneses learning peers possession assetthese results help shed light mechanisms underlying herding behavior financial markets peer effects consumption investment decisions