A generalized model of peer effects for binary choices: strategic complementarity and pressure to conform

Prochain Séminaire du GAINS
Mathieu LAMBOTTE : A generalized model of peer effects for binary choices: strategic complementarity and pressure to conform

Le 9 avril 2024

Le prochain séminaire du GAINS aura lieu le 09 avril 2024 de 10h30 à 12h00 en salle T204.

Mathieu LAMBOTTE (Université de Rennes 1) présentera un papier intitulé "A generalized model of peer effects for binary choices: strategic complementarity and pressure to conform".

Abstract :

This paper introduces a generalized model of peer effects for binary variables, microfounded on a game on a network, which accounts for two key sources of peer effects. Specifically, I distinguish between the influence of strategic complementarity, where an individual’s choice is shaped by the absolute number of peers selecting the same behavior, and the pressure to con- form to the local social norm, which penalizes deviations from the average behavior of peers. I establish conditions under which this game on a network results in a unique Bayesian Nash equilibrium, contingent on consistent rational expectations about peers’ behavior. I propose an estimation strategy based on an iterative maximum likelihood estimator. The model is applied to the data collected by Banerjee et al. (2013) in order to estimate peer effects in the decision to participate in microfinance within rural villages in India.

Un lien zoom est disponible pour ceux qui ne peuvent pas assister au séminaire en présentiel:

https://univ-lemans-fr.zoom.us/j/97741853411?pwd=bFJRTnFsMEdhL0R4eEtnK0ZzNmNIZz09

Meeting ID: 977 4185 3411
Passcode: 548040