The paper shows that peer information which banks collected from previous lending plays a role in current loan pricing. I construct peer information at the bank-firm level and find that firms obtain lower loan rates when borrowing from banks that lent to more similar peers in recent periods. The...

When individuals trade with strangers, there is a temptation to renege on agreements. If repeated interaction or exogenous enforcement are unavailable, societies often solve this problem via institutions that rely on group, rather than individual, reputation. Groups can employ two mechanisms to...

The focus of this paper is the endogenous formation of peer groups. In our model, agents choose peers before making contributions to public projects, and they differ in how much they value one project relative to another. Thus, the groups preference composition affects the type of contributions...