Peer Effects in Saving Decisions

with M. G. Kocher and S. Neuhofer

This study investigates whether peer information causally influences patience. Using a large lab-in-the-field experiment in Austrian vocational schools, we examine how information about peer behavior affects intertemporal decision-making. Participants engaged in a standard delayed-reward task with peer information, yielding a continuous patience measure. Our findings indicate that natural peers (classmates) significantly shape patience decisions, reducing the gap between observer and observed choices. This assimilation effect is asymmetric, favoring higher patience levels. Notably, reported social closeness does not moderate this influence. Furthermore, even exposure to an anonymous peer’s decision (from a different school) increases patience, albeit to a lesser extent than natural peers. These results suggest that peer information—whether from familiar or anonymous sources—can be leveraged to promote patient behaviors, with potential implications for policies aimed at fostering savings and educational investment.

(The Working Paper is in Progress)