arXiv · 2511.15891
Heterogeneity in peer effects for binary outcomes
Abstract
I introduce heterogeneity into the analysis of peer effects arising from conformity by allowing peer-effect parameters to vary across agents' actions. Using a structural model based on a simultaneous network game with incomplete information, I derive conditions that guarantee the uniqueness of the equilibrium and the identification of heterogeneous peer-effect parameters. Applying the model to data on smoking and alcohol consumption among secondary school students, and conducting policy simulations, I show that assuming a homogeneous preference for conformity leads to biased estimates of peer effects and ex ante policy evaluations.
Explore related subjects
Keep this discovery
Explore connections, maps & timelines
Mathieu Lambotte. 2025-11-19. Heterogeneity in peer effects for binary outcomes. https://arxiv.org/abs/2511.15891
Cite the original work for its findings. Save a collection to share your selection of sources.