Informative Social Interactions

52 Pages Posted: 14 May 2018 Last revised: 25 Nov 2019

See all articles by Luc Arrondel

Luc Arrondel

Paris School of Economics (PSE)

Hector F. Calvo Pardo

University of Southampton - Economics Division

Chryssi Giannitsarou

University of Cambridge - Faculty of Economics; Centre for Economic Policy Research (CEPR)

Michael Haliassos

Goethe University Frankfurt - House of Finance; Goethe University Frankfurt - Faculty of Economics and Business Administration; CEPR; NETSPAR

Date Written: November 22, 2019

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 Classification: D12; D83; D84; G11; C42

Suggested Citation

Arrondel, Luc and Calvo Pardo, Hector F. and Giannitsarou, Chryssi and Haliassos, Michael, Informative Social Interactions (November 22, 2019). Available at SSRN: https://ssrn.com/abstract=3171564 or http://dx.doi.org/10.2139/ssrn.3171564

Luc Arrondel

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Hector F. Calvo Pardo

University of Southampton - Economics Division ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom
+442380595051 (Phone)
+442380593858 (Fax)

Chryssi Giannitsarou

University of Cambridge - Faculty of Economics ( email )

Austin Robinson Building
Sidgwick Avenue
Cambridge, CB3 9DD
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Michael Haliassos (Contact Author)

Goethe University Frankfurt - House of Finance

Theodor-W.-Adorno-Platz 3
PF H32
Frankfurt am Main, 60323
Germany

Goethe University Frankfurt - Faculty of Economics and Business Administration ( email )

Theodor-W.-Adorno-Platz 3
PF H32
Frankfurt am Main, D-60323
Germany

CEPR

London
United Kingdom

NETSPAR ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Register to save articles to
your library

Register

Paper statistics

Downloads
66
Abstract Views
375
rank
347,573
PlumX Metrics