TY - JOUR
T1 - Peer effects in the diffusion of innovations
T2 - Theory and simulation
AU - Xiong, Hang
AU - Payne, Diane
AU - Kinsella, Stephen
N1 - Publisher Copyright:
© 2016 Elsevier Inc.
PY - 2016/8/1
Y1 - 2016/8/1
N2 - This paper presents a theoretical framework for studying peer effects in the diffusion of innovations. The underlying mechanisms of peer effects are generally under-discussed in existing studies. By investigating diffusion processes in the real world and reviewing previous studies, we find that information transmission, experience sharing and externalities are the basic mechanisms through which peer effects occur. They are termed as information effect, experience effect and externality effect, respectively. The three effects could occur through different types of relationships in a social network. Each of them plays a different role at different stages of a diffusion process. A simulation model incorporating multiple effects in a multiplex network is developed to provide a theoretical study. We simulate the experience effect and the externality effect in a context of rural diffusion. It generates the widely acknowledged patterns of diffusion in various scenarios. The experiments conducted using the model show that peer effects as a whole can be substantially misestimated if the underlying mechanisms are ignored.
AB - This paper presents a theoretical framework for studying peer effects in the diffusion of innovations. The underlying mechanisms of peer effects are generally under-discussed in existing studies. By investigating diffusion processes in the real world and reviewing previous studies, we find that information transmission, experience sharing and externalities are the basic mechanisms through which peer effects occur. They are termed as information effect, experience effect and externality effect, respectively. The three effects could occur through different types of relationships in a social network. Each of them plays a different role at different stages of a diffusion process. A simulation model incorporating multiple effects in a multiplex network is developed to provide a theoretical study. We simulate the experience effect and the externality effect in a context of rural diffusion. It generates the widely acknowledged patterns of diffusion in various scenarios. The experiments conducted using the model show that peer effects as a whole can be substantially misestimated if the underlying mechanisms are ignored.
KW - Diffusion of innovations
KW - Multiplex social networks
KW - Peer effects
UR - http://www.scopus.com/inward/record.url?scp=84967262746&partnerID=8YFLogxK
U2 - 10.1016/j.socec.2016.04.017
DO - 10.1016/j.socec.2016.04.017
M3 - Article
AN - SCOPUS:84967262746
SN - 2214-8043
VL - 63
SP - 1
EP - 13
JO - Journal of Behavioral and Experimental Economics
JF - Journal of Behavioral and Experimental Economics
ER -