Successful performance – be it in school, at the job, or in sports activities – requires perseverance, i.e., persistent work on a demanding task. We investigate in a controlled laboratory experiment how an individual’s social environment affects perseverance. We find evidence for two kinds of peer effects: being observed by a peer can serve as a commitment device, while observing a peer can...
We study private communication in social networks prior to a majority vote on two alternative policies. Some (or all) agents receive a private imperfect signal about which policy is correct. They can, but need not, recommend a policy to their neighbors in the social network prior to the vote. We show theoretically and empirically that communication can undermine efficiency of the vote and hence...