Assortative Matching and Social Interaction : A Field Experiment on Adolescents' Risky Choices. / Lucks, Konstantin ; Lührmann, Melanie; Winter, Joachim.

In: Journal of economic behavior & organization, Vol. 170, 02.2020, p. 313-340.

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Assortative Matching and Social Interaction : A Field Experiment on Adolescents' Risky Choices. / Lucks, Konstantin ; Lührmann, Melanie; Winter, Joachim.

In: Journal of economic behavior & organization, Vol. 170, 02.2020, p. 313-340.

Research output: Contribution to journalArticle

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Lucks, Konstantin ; Lührmann, Melanie ; Winter, Joachim. / Assortative Matching and Social Interaction : A Field Experiment on Adolescents' Risky Choices. In: Journal of economic behavior & organization. 2020 ; Vol. 170. pp. 313-340.

BibTeX

@article{245fb88475f74629996654c15fc73858,
title = "Assortative Matching and Social Interaction: A Field Experiment on Adolescents' Risky Choices",
abstract = "We propose a novel empirical strategy to distinguish two sources of peer effects in risky choices: i) assortative matching in the formation of the peer relationship, and ii) social interaction effects arising in the choice situation. We combine network information on existing peer relationships with controlled randomised exposure to social interaction conditions. We apply this strategy in a field experiment on risky decision making among adolescents in the age range of 13 to 15 years. School classes were randomly allocated to two social interaction treatments. Students were allowed to discuss their choices with a natural peer – either a friend or a randomly selected classmate – before individually making choices in an incentivised lottery task. In the control group, adolescents made choices without being able to discuss them with a peer. In a dyadic analysis, we find that friends and classmates are matched on socio-demographic characteristics but are not assortatively matched on risk preferences. In contrast, social interaction strongly increases the similarity of teenagers{\textquoteright} risky choices. A large fraction of peers align their choices perfectly.",
keywords = "peer effects; assortative matching; social interaction; risk and loss aversion",
author = "Konstantin Lucks and Melanie L{\"u}hrmann and Joachim Winter",
year = "2020",
month = feb,
doi = "10.1016/j.jebo.2019.12.011",
language = "English",
volume = "170",
pages = "313--340",
journal = "Journal of economic behavior & organization",
issn = "0167-2681",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Assortative Matching and Social Interaction

T2 - A Field Experiment on Adolescents' Risky Choices

AU - Lucks, Konstantin

AU - Lührmann, Melanie

AU - Winter, Joachim

PY - 2020/2

Y1 - 2020/2

N2 - We propose a novel empirical strategy to distinguish two sources of peer effects in risky choices: i) assortative matching in the formation of the peer relationship, and ii) social interaction effects arising in the choice situation. We combine network information on existing peer relationships with controlled randomised exposure to social interaction conditions. We apply this strategy in a field experiment on risky decision making among adolescents in the age range of 13 to 15 years. School classes were randomly allocated to two social interaction treatments. Students were allowed to discuss their choices with a natural peer – either a friend or a randomly selected classmate – before individually making choices in an incentivised lottery task. In the control group, adolescents made choices without being able to discuss them with a peer. In a dyadic analysis, we find that friends and classmates are matched on socio-demographic characteristics but are not assortatively matched on risk preferences. In contrast, social interaction strongly increases the similarity of teenagers’ risky choices. A large fraction of peers align their choices perfectly.

AB - We propose a novel empirical strategy to distinguish two sources of peer effects in risky choices: i) assortative matching in the formation of the peer relationship, and ii) social interaction effects arising in the choice situation. We combine network information on existing peer relationships with controlled randomised exposure to social interaction conditions. We apply this strategy in a field experiment on risky decision making among adolescents in the age range of 13 to 15 years. School classes were randomly allocated to two social interaction treatments. Students were allowed to discuss their choices with a natural peer – either a friend or a randomly selected classmate – before individually making choices in an incentivised lottery task. In the control group, adolescents made choices without being able to discuss them with a peer. In a dyadic analysis, we find that friends and classmates are matched on socio-demographic characteristics but are not assortatively matched on risk preferences. In contrast, social interaction strongly increases the similarity of teenagers’ risky choices. A large fraction of peers align their choices perfectly.

KW - peer effects; assortative matching; social interaction; risk and loss aversion

U2 - 10.1016/j.jebo.2019.12.011

DO - 10.1016/j.jebo.2019.12.011

M3 - Article

VL - 170

SP - 313

EP - 340

JO - Journal of economic behavior & organization

JF - Journal of economic behavior & organization

SN - 0167-2681

ER -