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Peer effects, self-selection and dishonesty

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  • Charroin, Liza
  • Fortin, Bernard
  • Villeval, Marie Claire

Abstract

If individuals tend to behave like their reference group, is it because of peer effects, self-selection, or both? Using a peer effect model allowing for conformity and link formation, we designed a real-effort laboratory experiment in which individuals could misreport their performance and select their peers. Our results reveal both a preference for conformity and homophilous link formation, but only among individuals cheating in isolation. This suggests that such link formation was not motivated by a taste for similarity but by acquiring self-serving information. Importantly, we reject the presence of a self-selection bias in the peer effect estimates by showing that the size of peer effects is similar when identical peers were randomly assigned and when individuals selected them.

Suggested Citation

  • Charroin, Liza & Fortin, Bernard & Villeval, Marie Claire, 2022. "Peer effects, self-selection and dishonesty," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 618-637.
    • Handle: RePEc:eee:jeborg:v:200:y:2022:i:c:p:618-637
    DOI: 10.1016/j.jebo.2022.06.024
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    2. Mira Fischer & Rainer Michael Rilke & B. Burcin Yurtoglu, 2023. "When, and why, do teams benefit from self-selection?," Experimental Economics, Springer;Economic Science Association, vol. 26(4), pages 749-774, September.

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    More about this item

    Keywords

    Peer effects; Self-selection; Homophily; Dishonesty; Experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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