skip to content

Faculty of Economics

Journal Cover

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

Informative Social Interactions

Journal of Economic Behavior and Organization

Vol. 203 pp. 246-263 (2022)

Abstract: Household finances are confidential and discussions are limited to a subset of peers. We collect novel representative survey data to examine separately whether interactions with inner and outer social circles influence return perceptions, expectations, and exposure to a widely known financial instrument in a developed economy with multiple information sources. We find that a respondent's connectedness, proxied by perceived prevalence of information or participation in the small financial circle, improves expectation accuracy indirectly, through boosting accuracy of perceived past returns; and influences stock participation and exposure not only by influencing expectations, but also directly.

Keywords: Household finance, subjective expectations, peer effects, information networks, portfolio choice

JEL Codes: G50, G11, E21

Author links: Chryssi Giannitsarou  

Publisher's Link:

Keynes Fund Project(s):
Financial Decisions: The Role of Information Through Social Networks ** (JHLQ)  

Cambridge Working Paper in Economics Version of Paper: Informative Social Interactions, Arrondel, L., Calvo-Pardo, H., Giannitsarou, C., Haliassos, M., (2019)

Papers and Publications

Recent Publications

Carvalho, V. M., Nirei, M., Saito, Y. U. and Tahbaz-Salehi, A. Supply Chain Disruptions: Evidence from the Great East Japan Earthquake Quarterly Journal of Economics [2021]

Bhattacharya, D. The Empirical Content of Binary Choice Models Econometrica [2021]

Brotherhood, l., Cavalcanti, T., Da Mata, D. and Santos, C. Slums and Pandemics Journal of Development Economics [2022]

Iyer, S. Religion and Discrimination: A Review Essay of Persecution and Toleration: The Long Road to Religious Freedom Journal of Economic Literature [2022]