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We introduce an approach to deal with self-selection of peers in the linear-in-means model. Contrary to the existing proposals we do not require to specify a model for how the selection of peers comes about. Rather, we exploit two…

Econometrics · Economics 2020-08-19 Koen Jochmans

We propose a method of estimating the linear-in-means model of peer effects in which the peer group, defined by a social network, is endogenous in the outcome equation for peer effects. Endogeneity is due to unobservable individual…

Econometrics · Economics 2019-08-01 Ida Johnsson , Hyungsik Roger Moon

This paper studies estimation and inference of heterogeneous peer effects featuring group fixed effects and slope heterogeneity under latent structure. We adapt the Classifier-Lasso algorithm to consistently discover latent structures and…

Methodology · Statistics 2026-02-09 Zhongjian Lin , Zhentao Shi , Yapeng Zheng

We develop a model that captures peer effect heterogeneity by modeling the endogenous spillover to be linear in ordered peer outcomes. Unlike the canonical linear-in-means model, our approach accounts for the distribution of peer outcomes…

Econometrics · Economics 2025-03-04 Eyo I. Herstad , Myungkou Shin

We develop a continuous-time peer-effect discrete choice model where peers that affect the preferences of a given agent are randomly selected based on their previous choices. We characterize the equilibrium behavior and study the empirical…

Econometrics · Economics 2025-11-27 Nail Kashaev , Natalia Lazzati

Despite strong evidence for peer effects, little is known about how individuals balance intrinsic preferences and social learning in different choice environments. Using a combination of experiments and discrete choice modeling, we show…

General Economics · Economics 2024-02-29 Fabian Dvorak , Urs Fischbacher

Peer effects, in which the behavior of an individual is affected by the behavior of their peers, are posited by multiple theories in the social sciences. Other processes can also produce behaviors that are correlated in networks and groups,…

Methodology · Statistics 2021-02-16 Dean Eckles , Eytan Bakshy

We present a model that investigates preference evolution with endogenous matching. In the short run, individuals' subjective preferences influence partner selection and behavior in strategic interactions, which affect their material…

Theoretical Economics · Economics 2025-04-30 Ziwei Wang , Jiabin Wu

We develop a general model of discrete choice that incorporates peer effects in preferences and consideration sets. We characterize the equilibrium behavior and establish conditions under which all parts of the model can be recovered from a…

General Economics · Economics 2026-02-05 Nail Kashaev , Natalia Lazzati , Ruli Xiao

Three theories offer competing predictions about how people respond to growing diversity in their social environment. Contact theory suggests more exposure to out-groups reduces prejudice; conflict theory predicts a stronger in-group…

I study peer effects that arise from irreversible decisions in the absence of a standard social equilibrium. I model a latent sequence of decisions in continuous time and obtain a closed-form expression for the likelihood, which allows to…

Econometrics · Economics 2026-02-18 Vincent Starck

This paper presents a three-step empirical framework for optimizing classroom assignments under endogenous peer effects, using data from the China Education Panel Survey (CEPS). We design \textit{PeerNN}, a neural network that mimics…

General Economics · Economics 2025-06-05 Lei Bill Wang , Zhenbang Jiao , Om Prakash Bedant , Haoran Wang

We address the estimation of endogenous treatment models with social interactions in both the treatment and outcome equations. We model the interactions between individuals in an internally consistent manner via a game theoretic approach…

Econometrics · Economics 2024-08-27 Zhongjian Lin , Francis Vella

In modern interconnected societies, opinions and beliefs can quickly spread across large populations, giving rise to collective behaviors such as the adoption of social norms or polarization. These phenomena have motivated many models aimed…

Physics and Society · Physics 2026-05-27 Cosimo Agostinelli , Marco Mancastroppa , Alain Barrat

We develop a dynamic model of discrete choice that incorporates peer effects into random consideration sets. We characterize the equilibrium behavior and study the empirical content of the model. In our setup, changes in the choices of…

Econometrics · Economics 2021-05-19 Nail Kashaev , Natalia Lazzati

People learn about opportunities and actions by observing the experiences of their friends. We model how homophily -- the tendency to associate with similar others -- affects both the endogenous quality and diversity of the information…

Theoretical Economics · Economics 2026-02-03 Yunus C. Aybas , Matthew O. Jackson

Social influence is the process by which individuals adapt their opinion, revise their beliefs, or change their behavior as a result of social interactions with other people. In our strongly interconnected society, social influence plays a…

Physics and Society · Physics 2013-11-15 Mehdi Moussaid , Juliane E. Kaemmer , Pantelis P. Analytis , Hansjoerg Neth

Decisions to pursue higher education are not fully explained by economic incentives, with social influence and peer effects playing a crucial, yet dynamically understudied, role. This paper develops a theoretical non-linear dynamics model…

General Economics · Economics 2026-04-06 Andrea Caravaggio , Marco Catola , Silvia Leoni

In recent years networks have gained unprecedented attention in studying a broad range of topics, among them in complex systems research. In particular, multi-agent systems have seen an increased recognition of the importance of the…

Physics and Society · Physics 2007-05-23 László Gulyás , Elenna R. Dugundji

Academics is a huge repository of research avenue. Students tend to behave and adapt to the classroom based on their peer influences. Peers help in the increase of communication skills. Research shows group study is more effective than…

Social and Information Networks · Computer Science 2021-08-17 Rajeshwari K , Apurva Rohit Hegde , Drishika Patil
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