EconPapers    
Economics at your fingertips  
 

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

Noam Yuchtman, Florian Ederer, Bruno Ferman and Leonardo Bursztyn

No 222, 2013 Meeting Papers from Society for Economic Dynamics

Abstract: 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 have statistically and economically significant effects on investment decisions. These results can help shed light on the mechanisms underlying herding behavior in financial markets.

New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2013/paper_222.pdf (application/pdf)

Related works:
Working Paper: Understanding Peer Effects in Financial Decisions: Evidence from a Field Experiment (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed013:222

Access Statistics for this paper

More papers in 2013 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2019-04-17
Handle: RePEc:red:sed013:222