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Demonstration effects in preventive care

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  • Ritesh Banerjee
  • Ethan Cohen-Cole
  • Giulio Zanella

Abstract

Using a unique dataset composed of female employees at a large medical organization, this paper explores the role of social interactions among female co-workers and neighbors in the decision to obtain breast cancer screening exams. In our theoretical framework, the experience of other women is salient because it alters the tolerance for ambiguity about their own vulnerability, via a comparative ignorance effect. We find that the social multiplier ranges from 2 to 3: the equilibrium effect of an exogenous shock that impacts the probability of performing a mammogram is two to three times the shock itself. We perform a number of checks: among other things, these reveal (in agreement with the model and our intuition) that such a social effect is stronger for women whose job (according to the O*NET dictionary of occupations) offers more opportunities for social interaction, and weaker for individuals directly involved in health care, such as doctors and nurses.

Suggested Citation

  • Ritesh Banerjee & Ethan Cohen-Cole & Giulio Zanella, 2007. "Demonstration effects in preventive care," Supervisory Research and Analysis Working Papers QAU07-7, Federal Reserve Bank of Boston.
  • Handle: RePEc:fip:fedbqu:qau07-7
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    References listed on IDEAS

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    Cited by:

    1. Niels-Hugo Blunch & Nabanita Datta Gupta, 2020. "Mothers’ health knowledge for children with diarrhea: who you are or who you know?," Review of Economics of the Household, Springer, vol. 18(4), pages 1131-1164, December.
    2. Niels-Hugo Blunch & Nabanita Datta Gupta, 2014. "Social Networks and Health Knowledge in India: Who You Know or Who You Are?," Economics Working Papers 2014-24, Department of Economics and Business Economics, Aarhus University.

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