Homophily, Peer Effects, and Dishonesty

15 aprile 2021
15 April 2021
Contatti: 
Doctoral School of Social Sciences
via Verdi 26, 38122 - Trento
Tel. 
+39 0461 283756 - 2290
Fax 
+39 0461 282335
school.socialsciences@unitn.it

Skype: school.socialsciences

Where: Zoom Platform
Time: 2 p.m.

Please contact school.socialsciences [at] unitn.it

 for the link to the Zoom event.

Speaker

Abstract

If individuals tend to behave like their peers, is it because of conformity, that is, the preference of people to align behavior with the behavior of their peers; homophily, that is, the tendency of people to bond with similar others; or both? We address this question in the context of an ethical dilemma. Using a peer effect model allowing for homophily, we designed a real-effort laboratory experiment in which individuals could misreport their performance to earn more. Our results reveal a preference for conformity and for homophily in the selection of peers, but only among participants who were cheating in isolation. The size of peer effects is similar when identical peers were randomly assigned and when they were selected by individuals. We thus jointly reject the presence of a self-selection bias in the peer effect estimates and of a link strength effect.

Discussants