Self‐control or social control? Peer effects on temptation consumption.

This paper examines peer effects on self‐control problems. I construct a theoretical model to describe how peer networks influence consumption behaviors through social norms. Using monthly survey data conducted in 16 Thai villages from 1999 through 2004, I find that peer's temptation consumption sig...

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Publicado en:Southern Economic Journal Vol. 91; no. 2; pp. 630 - 676
Autor principal: Chuang, Yating
Formato: Artículo
Publicado: Wiley-Blackwell Oct2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Oct2024
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        10.1002/soej.12697
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        atl: Self‐control or social control? Peer effects on temptation consumption.
      aug:
        au: Chuang, Yating
        affil: Academia Sinica, Institute of Economics, Taipei, Taiwan
      su:
        Peer pressure
        Consumption (Economics)
        Social norms
        Social networks
        U.S. dollar
      sug:
        subj:
          Peer pressure
          Consumption (Economics)
          Social norms
          Social networks
          Other Individual and Family Services
          U.S. dollar
      keyword:
        consumption
        networks
        peer effects
        self‐control
        temptation
        consumption
        networks
        peer effects
        self‐control
        temptation
      ab: This paper examines peer effects on self‐control problems. I construct a theoretical model to describe how peer networks influence consumption behaviors through social norms. Using monthly survey data conducted in 16 Thai villages from 1999 through 2004, I find that peer's temptation consumption significantly impacts individuals' temptation consumption such as alcohol, tobacco, and gambling. A one baht (around $0.025 U.S. dollars) increase in peer's temptation consumption leads to a 1.5 times increase in one's own temptation consumption. With detailed household‐level social network information defined by actual transactions, this paper identifies peer effects using a friend of a friend (excluded network) as the instrument. The panel nature of this instrument overcomes various common identification challenges, such as reflection, correlated effects, and common unobservable shocks, in the literature. My findings suggest that these peer effects are driven primarily by social norms, rather than risk sharing.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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