Understanding Peer Effects in Financial Decisions : Evidence from a Field Experiment

@inproceedings{Ederer2012UnderstandingPE,
  title={Understanding Peer Effects in Financial Decisions : Evidence from a Field Experiment},
  author={Florian Ederer},
  year={2012}
}
Using a high-stakes field experiment conducted with a financial brokerage, we implement a novel design to separately identify two channels of social influence in financial decisions, both widely studied theoretically. When someone purchases an asset, his peers may also want to purchase it, both because they learn from his choice (“social learning”) and because his possession of the asset directly affects others’ utility of owning the same asset (“social utility”). We find that both channels… CONTINUE READING
Highly Cited
This paper has 19 citations. REVIEW CITATIONS