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Peer effects in product adoption

Theresa Kuchler, Arlene Wong () and Johannes Stroebel
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Theresa Kuchler: NYU Stern School of Business

No 1001, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: To what extend do friendship links affect the adoption of new products? We first combine social network data with individual choices on the adoption of the newly introduced Google Pixel phone to estimate the effects of friends’ adoption of a new product on individual purchasing decisions. We use the exclusive introduction of the Pixel by Verizon combined with differences in Verizon market share across the US to instrument for friends’ initial adoption of the phone. Next, we analyze the role of county level connections on the adoption of a wide variety of products in stores across US counties. Counties that are more connected socially adopt new products at similar times. We explore whether consumers in more socially connected counties have access to a more new products and a wider variety of products and the implications of such consumption externalities on consumer welfare.

Date: 2018
New Economics Papers: this item is included in nep-net, nep-pay and nep-ure
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Working Paper: Peer effects in product adoption (2019) Downloads
Working Paper: Peer Effects in Product Adoption (2019) Downloads
Working Paper: Peer Effects in Product Adoption (2019) Downloads
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