Informative Social Interactions

Luc Arrondel, Hector Calvo Pardo, Chryssi Giannitsarou and Michael Haliassos

No 14840, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Household finances are confidential and discussions are limited to a subset of peers. We collect novel representative survey data to examine separately whether interac- tions 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: Information networks; Social interactions; Subjective expectations; Peer effects; Household portfolio choice (search for similar items in EconPapers)
JEL-codes: D12 D83 D84 G11 G5 (search for similar items in EconPapers)
Date: 2022-03
New Economics Papers: this item is included in nep-net
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Related works:
Journal Article: Informative social interactions (2022)
Working Paper: Informative Social Interactions (2019)
Working Paper: Informative social interactions (2019)
Working Paper: Informative Social Interactions (2016)
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