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Faculty of Economics

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Arrondel, L., Calvo-Pardo, H., Giannitsarou, C., Haliassos, M.

Informative Social Interactions

CWPE1911

Abstract: We design, field and exploit survey data from a representative sample of the French population to examine whether informative social interactions enter households.stockholding decisions. Respondents report perceptions about their circle of peers with whom they interact about financial matters, their social circle and the population. We provide evidence for the presence of an information channel through which social interactions influence perceptions and expectations about stock returns, and financial behavior. We also find evidence of mindless imitation of peers in the outer social circle, but this does not permeate as many layers of financial behavior as informative social interactions do.

Keywords: Information networks, Social interactions, Subjective expectations, Peer effects, Portfolio choice

JEL Codes: D12 D83 D84 G11 C42

Author links: Chryssi Giannitsarou  

PDF: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1911.pdf

Open Access Link: https://doi.org/10.17863/CAM.37452