Author(s):	Luc Arrondel, Hector Calvo-Pardo, Chryssi Giannitsarou, Michael Haliassos
Publication Date:	June 2020
Keyword(s):	household portfolio choice, Information networks, peer effects, Social interactions, subjective expectations
JEL(s):	D12, D83, D84, G11, G5
Programme Areas:	Financial Economics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=14840

We collect survey data from a representative population sample to examine whether informative social interactions significantly influence perceptions of past returns, expectations, participation and exposure to a widely known financial instrument in a developed economy with multiple information sources. Respondents report perceptions about peers with whom they discuss 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, stock market participation and portfolio share. We find only mixed evidence of mindless imitation of peers, permeating fewer layers of financial behavior.