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Identifying and Decomposing Peer Effects on Decision-Making Using a Randomized Controlled Trial

Author

Listed:
  • Daichi Shimamoto

    (Waseda Institute of Political Economy, Waseda University)

  • Yasuyuki Todo

    (Graduate School of Economics, Waseda University)

  • Yu Ri Kim

    (Faculty of Political Science and Economics, Waseda University and Graduate School of Frontier Sciences, The University of Tokyo)

  • Petr Matous

    (School of Engineering, Department of Civil Engineering, The University of Tokyo and Complex Systems Research Group, Faculty of Engineering and IT, The University of Sydney)

Abstract

This paper investigates peer effects on firm managers' decisions. We invited 131 randomly selected firm representatives to three one-day seminars on export promotion. We found that peers' invitation in the seminars has a positive effect on firms' participation. We distinguish between peers' invitation on the same day and other days, finding that the former has a positive effect while the latter has no significant effect. These results imply that peer effects arise mostly through a reduction of psychological cost of participation. Our results suggest that multiple equilibria in the share of participants within each network of firms may emerge.Length: 32 pages

Suggested Citation

  • Daichi Shimamoto & Yasuyuki Todo & Yu Ri Kim & Petr Matous, 2017. "Identifying and Decomposing Peer Effects on Decision-Making Using a Randomized Controlled Trial," Working Papers 1704, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:1704
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    References listed on IDEAS

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    More about this item

    Keywords

    peer effects; social networks; information confirmation; free riding; randomized controlled trials;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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