The effect of peer observation on consumption choices: evidence from a lab-in-field experiment

Antonia Grohmann and Sahra Sakha

EconStor Open Access Articles and Book Chapters, 2019, vol. 51, issue 55, 5937-5951

Abstract: We investigate the impact of peer observation on consumption decisions using a lab-in-field experiment. Respondents make consumption decisions either alone or under peer observation. We find evidence for peer effects. We are able to study these further by looking into the mechanism and performing detailed heterogeneity analysis. Concerning the mechanisms, we find evidence for an information channel. Further, we show that the consumption choice is influenced by how many people made the same decision previously, but not by who those people are, hence finding evidence of a psychological channel. Respondents with higher cognitive ability are less susceptible to peer effects, while people living in small villages are more susceptible.

Keywords: Consumption; Peer effects; Conformity (search for similar items in EconPapers)
JEL-codes: C93 D12 O12 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: The effect of peer observation on consumption choices: evidence from a lab-in-field experiment (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:208379

DOI: 10.1080/00036846.2019.1638499

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