Peer Effects in Product Adoption

By Michael C. Bailey, Drew Johnston, T. Kuchler, Johannes Stroebel, Arlene Wong. Social Science Research Network, 2019

121 citations recorded by the source corpus.

We use de-identified data from Facebook to study the nature of peer effects in the market for cell phones. To identify peer effects, we exploit variation in friends' new phone acquisitions resulting from random phone losses. A new phone purchase by a friend has a large and persistent effect on an individual's own demand for phones of the same brand. While peer effects increase the overall demand for phones, a friend's purchase of a particular phone brand can reduce an individual's own demand for phones from competing brands, in particular if they are running on a different operating system. (JEL C45, D12, L63, M31, Z13)

Subfields: Media Technology, Sociology and Political Science, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a0d9a6d91fa68744986de99040a4bd0a92ac1ed2

Citations in the corpus

• Segmented Housing Search (2020, unknown): “, 2015; Bailey et al., 2017, 2018a,b, 2019). (2)As such, our paper also contributes to the literature that considers house valuation with heterogeneous regions and buyers. For example, Poterba (1991) consider the role of demographics for prices, Bayer, Ferreira and McMillan (2007) look at school qua”