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This paper estimates social effects of incentivizing people in teams. In two field experiments featuring exogenous team … formation and opportunities for repeated social interactions, we find large team effects that operate through social channels …. The team compensation system induced agents to choose effort as if they valued a marginal dollar of compensation for their …
Persistent link: https://www.econbiz.de/10012461970
This paper develops a model of social interactions and endogenous poverty traps. The key idea is captured in a framework in which the likelihood of future social interactions with members of one's group is partly determined by group-specific investments made by individuals. I prove three main...
Persistent link: https://www.econbiz.de/10012466301
We develop a Roy model of social interactions in which individuals sort into peer groups based on comparative advantage. Two key results emerge: First, when comparative advantage is the guiding principle of peer group organization, the effect of moving a student into an environment with...
Persistent link: https://www.econbiz.de/10012461780
, can affect outcomes. We explore the economics of revealing type in a simple laboratory experiment to learn about the …
Persistent link: https://www.econbiz.de/10012456720
We develop and analyze a tractable empirical model for strategic network formation that can be estimated with data from a single network at a single point in time. We model the network formation as a sequential process where in each period a single randomly selected pair of agents has the...
Persistent link: https://www.econbiz.de/10012462613
This paper establishes a causal relation between an individual's decision of whether to own stocks and average stock market participation decision of the individual's community. We instrument for the average ownership of an individual's community with lagged average ownership of the states in...
Persistent link: https://www.econbiz.de/10012465485
This paper develops a model of social interactions with endogenous association. People are assumed to invest in relationships to maximize their utility. Even in a linear-in-means model, when associations are endogenous, the effect of macro-group composition on behavior is non-linear and varies...
Persistent link: https://www.econbiz.de/10012465616
In this paper, we investigate political communications in social networks characterized both by homophily-a tendency to associate with similar individuals-and group size. To generate testable hypotheses, we develop a simple theory of information diffusion in social networks with homophily and...
Persistent link: https://www.econbiz.de/10012457985
When members of deliberating groups speak with one another, their predeliberation tendencies often become exacerbated as their views become more extreme. The resulting phenomenon -- group polarization -- has been observed in many settings, and it bears on the actions of juries, administrative...
Persistent link: https://www.econbiz.de/10012464959
Little is known about the economic mechanisms leading to the high level of clustering in behavior commonly observed in the data. We present a model where agents can interact according to three distinct mechanisms, and we derive testable implications which allow us to distinguish between the...
Persistent link: https://www.econbiz.de/10012459461