Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/125158
Authors: 
Grohmann, Antonia
Sakha, Sahra
Year of Publication: 
2015
Series/Report no.: 
DIW Discussion Papers 1525
Abstract: 
This paper investigates the impact of peer observation on the consumption decisions of rural households in Thailand using a lab-in-the-field experiment. We find that those groups that observe each other show lower within group standard deviation in their decisions. Thus, we find evidence for conformity. Further, we find that individual's consumption choice is influenced by the group choice controlling for large number of individual, household, and village characteristics. We find that unfamiliarity of the product is counteracted by peer effects. Finally, we find evidence of treatment heterogeneity with regards to cognitive ability and village size.
Subjects: 
Consumption
Peer Effects
Conformity
JEL: 
D12
C21
C92
Document Type: 
Working Paper

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