Heterogeneity in peer effects for binary outcomes (opens in new tab)

I introduce heterogeneity into the analysis of peer effects arising from conformity by allowing peer-effect parameters to vary across agents' actions. Using a structural model based on a simultaneous network game with incomplete information, I derive conditions that guarantee the uniqueness of the equilibrium and the identification of heterogeneous peer-effect parameters. Applying the model to data on smoking and alcohol consumption among se...