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Homophily, Peer Effects, and Dishonesty

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  • Liza Charroin

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 - Université Paris 1 Panthéon-Sorbonne)

  • Bernard Fortin

    (Département d'Economique, Université Laval - ULaval - Université Laval [Québec], CIRPEE - Centre interuniversitaire sur le risque, les politiques économiques et l'emploi [Montréal] - UQAM - Université du Québec à Montréal = University of Québec in Montréal, CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal = University of Québec in Montréal, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

  • Marie Claire Villeval

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

Abstract

If individuals tend to behave like their peers, is it because of conformity, that is, the preference of people to align behavior with the behavior of their peers; homophily, that is, the tendency of people to bond with similar others; or both? We address this question in the context of an ethical dilemma. Using a peer effect model allowing for homophily, we designed a real-effort laboratory experiment in which individuals could misreport their performance to earn more. Our results reveal a preference for conformity and for homophily in the selection of peers, but only among participants who were cheating in isolation. The size of peer effects is similar when identical peers were randomly assigned and when they were selected by individuals. We thus jointly reject the presence of a self-selection bias in the peer effect estimates and of a link strength effect.

Suggested Citation

  • Liza Charroin & Bernard Fortin & Marie Claire Villeval, 2021. "Homophily, Peer Effects, and Dishonesty," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03196953, HAL.
    • Handle: RePEc:hal:cesptp:halshs-03196953
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03196953
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    References listed on IDEAS

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    1. Homophily, Peer Effects, and Dishonesty
      by maximorossi in NEP-LTV blog on 2021-05-21 20:05:50

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    Cited by:

    1. Soraperra, Ivan & van der Weele, Joël & Villeval, Marie Claire & Shalvi, Shaul, 2023. "The social construction of ignorance: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 138(C), pages 197-213.
    2. Marie Claire Villeval, 2019. "Comportements (non) éthiques et stratégies morales," Revue économique, Presses de Sciences-Po, vol. 70(6), pages 1021-1046.
    3. Julien Benistant & Fabio Galeotti & Marie Claire Villeval, 2021. "The Distinct Impact of Information and Incentives on Cheating," Working Papers halshs-03110295, HAL.
    4. Eugen Dimant & Shaul Shalvi, 2022. "Meta-Nudging Honesty: Past, Present, and Future of the Research Frontier," CESifo Working Paper Series 9939, CESifo.
    5. Kaiwen Leong & Huailu Li & Sharon Xuejing Zuo, 2024. "Cheating amongst youth offenders: How peers and their social status influence cheating," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 242-266, January.

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    More about this item

    Keywords

    Peer Effects; Homophily; Dishonesty; Self-Selection Bias; Experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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