Identifying and decomposing peer effects on decision-making using a randomized controlled trial

Abstract Utilizing a randomized controlled trial (RCT) in traditional clusters of apparel and textile firms Vietnam, this paper investigates peer effects on firm managers’ decisions to participate seminars export promotion. We invited 131 randomly selected representatives three one-day use the number peers identify effects. further decompose into same seminar, those earlier seminars, later seminars. find that former has positive effect firms' participation, whereas latter two have no significant effect. These results imply participation primarily arise from benefits face-to-face interactions. The presence suggests multiple equilibria terms share participants within each village may emerge, which is also consistent with our observations.