ICES Brown Bag for April 11

Events, Seminars | April 1, 2019

Join us for the ICES Brown Bag Lecture of the Spring 2019 semester, featuring Liza Charrion.

Dr. Charrion, of Heidelberg University, will discuss her paper Homophily, Peer Effects and Dishonesty  (Abstract). The talk will take place on Thursday, April 11th, from 12:00 to 1:00pm, in room 5075 of the Vernon Smith Hall, Arlington campus.

Coffee and dessert will be provided.

Please visit the Brown Bag Schedule to learn more about the Brown Bag series.

Abstract

In the domain of ethics, do individuals tend to behave like their peers and if so, is it because of conformity,-i.e., the tendency of people to align behavior with the behavior of their peers-, homophily -i.e., the tendency of people to bond with similar others-, or both? Based on our model of peer effects, we designed a laboratory experiment to estimate the effects of conformity and of endogenous network formation on lying behavior. In one treatment, participants were assigned peers at random, while in the other treatment participants could choose their peers based on an imprecise signal on their past lying behavior. Our results show strong evidence of homophily for dishonest individuals, i.e., liars show a preference for peers who are more likely to be liars. We find small evidence of pure peer effects on behavior, but that is amplified by the selection/homophily bias when subjects can endogenously choose their peers.

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