Extensive field evidence shows individuals' decisions in settings involving uncertainty depend on their peers' decisions. One hypothesized cause of peer group effects is social interaction effects: an individual's utility from an action is enhanced by others taking the same action. We employ a...

Extensive field evidence shows individuals’ decisions in settings involving choiceunder uncertainty (e.g. savings and investment choices) depend on the decisions of their peers.One hypothesized cause of peer group effects is social interaction effects: an individual’s utilityfrom an action...