EconBase
← All papers

Heterogeneity in peer effects for binary outcomes

Mathieu Lambotte

arXiv 19 Nov 2025 · Econometrics

arXiv:2511.15891 · PDF · Extracted main text

Abstract

I introduce heterogeneity into the analysis of peer effects that arise from conformity, allowing the strength of the taste for conformity to vary across agents' actions. Using a structural model based on a simultaneous network game with incomplete information, I derive conditions for equilibrium uniqueness and for the identification of heterogeneous peer-effect parameters. I also propose specification tests to determine whether the conformity model or the spillover model is consistent with the observed data in the presence of heterogeneous peer effects. Applying the model to data on smoking and alcohol consumption among secondary school students, I show that assuming a homogeneous preference for conformity leads to biased estimates.

Citation extraction

60
references
120
in-text mentions
60
distinct cited
1
self-citations
14,528
main-text words

appendix boundary found by appendix_command · 70% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Badev, Anton (2021) Nash Equilibria on (Un)Stable Networks1.00054100%
2Houndetoungan, Elysée Aristide (2024) A Count Data Model with Social Interactions0.9416483%
3Brock, W. A. and Durlauf, S. N (2001) Discrete Choice with Social Interactions0.88513569%
4Lee, Lung-fei and Li, Ji and Lin, Xu (2014) Binary Choice Models with Social Network under Heterogeneous Rational Expectations0.87415967%
5Xu, Haiqing (2018) Social interactions in large networks: A game theoretic approach0.8434375%
6Boucher, Vincent and Rendall, Michelle and Ushchev, Philip and Zenou… (2024) Toward a general theory of peer effects0.8435360%
7Vincent Boucher (2016) Conformism and self-selection in social networks0.7373367%
8Hausman, Jerry A and Abrevaya, Jason and Scott-Morton, Fiona M (1998) Misclassification of the dependent variable in a discrete-response setting0.64441100%
9Akerlof, George (1997) Social Distance and Social Decisions0.64422100%
10Bernheim, B Douglas (1984) Rationalizable strategic behavior0.64422100%

Showing the top 10 of 60 scored citations.