Author : Daniel Ian Rock
Publisher :
ISBN 13 :
Total Pages : 23 pages
Book Rating : 4.:/5 (96 download)
Book Synopsis Estimating Peer Effects in Networked Panel Data by : Daniel Ian Rock
Download or read book Estimating Peer Effects in Networked Panel Data written by Daniel Ian Rock and published by . This book was released on 2016 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: After product adoption, consumers make decisions about continued use. These choices can be influenced by peer decisions in networks, but identifying causal peer influence effects is challenging. Correlations in peer behavior may be driven by correlated effects, exogenous consumer and peer characteristics, or endogenous peer effects of behavior (Manski 1993). Extending the work of Bramoullé et al. (2009), we apply proofs of peer effect identification in networks under a set of exogeneity assumptions to the panel data case. With engagement data for Yahoo Go, a mobile application, we use the network topology of application users in an instrumental variables setup to estimate usage peer effects, comparing the performance of a variety of regression models. We find analyses of this type may be especially useful for ruling out endogenous peer effects as a driver of behavior. Omitted variables (especially ones related to network homophily) and violation of the exogeneity assumptions can bias regression coefficients toward finding statistically significant peer effects.