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It Takes a Village: Peer Effects and Externalities in Technology Adoption

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  • Romain Ferrali
  • Guy Grossman
  • Melina R. Platas
  • Jonathan Rodden

Abstract

Do social networks matter for the adoption of new forms of political participation? We develop a formal model showing that the quality of communication that takes place in social networks is central to understanding whether a community will adopt forms of political participation where benefits are uncertain and where there are positive externalities associated with participation. Early adopters may exaggerate benefits, leading others to discount information about the technology's value. Thus, peer effects are likely to emerge only when informal institutions support truthful communication. We collect social network data for 16 Ugandan villages where an innovative mobile‐based reporting platform was introduced. Consistent with our model, we find variation across villages in the extent of peer effects on technology adoption, as well as evidence supporting additional observable implications. Impediments to social diffusion may help explain the varied uptake of new and increasingly common political communication technologies around the world.

Suggested Citation

  • Romain Ferrali & Guy Grossman & Melina R. Platas & Jonathan Rodden, 2020. "It Takes a Village: Peer Effects and Externalities in Technology Adoption," American Journal of Political Science, John Wiley & Sons, vol. 64(3), pages 536-553, July.
    • Handle: RePEc:wly:amposc:v:64:y:2020:i:3:p:536-553
    DOI: 10.1111/ajps.12471
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    References listed on IDEAS

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    1. Tiago Peixoto & Micah L. Sifry, 2017. "Civic Tech in the Global South," World Bank Publications - Books, The World Bank Group, number 27947.
    2. Roland Bénabou & Jean Tirole, 2011. "Identity, Morals, and Taboos: Beliefs as Assets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 805-855.
    3. Cesi Cruz & Julien Labonne & Pablo Querubín, 2017. "Politician Family Networks and Electoral Outcomes: Evidence from the Philippines," American Economic Review, American Economic Association, vol. 107(10), pages 3006-3037, October.
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    1. Ma, Wanglin & Zheng, Hongyun & Nnaji, Amaka, 2023. "Cooperative membership and adoption of green pest control practices: Insights from rice farmers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(03), April.
    2. Mu, Lan & Luo, Chunxia & Li, Ying & Tan, Zongjia & Gao, Shengrong, 2024. "‘They adopt, I also adopt’: The neighborhood effects and irrigator farmers’ conversion to adopt water-saving irrigation technology," Agricultural Water Management, Elsevier, vol. 305(C).
    3. Alejandro Sanchez-Becerra, 2022. "The Network Propensity Score: Spillovers, Homophily, and Selection into Treatment," Papers 2209.14391, arXiv.org.
    4. Quan He & Wanglin Ma & Puneet Vatsa & Hongyun Zheng, 2024. "Impact of mobile payment adoption on household expenditures and subjective well‐being," Review of Development Economics, Wiley Blackwell, vol. 28(1), pages 264-285, February.

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