Diffusion in Social Networks : Experimental Evidence on Information Sharing vs Peer Pressure

We conduct a randomized controlled trial in 180 villages in Uttar Pradesh, India, to promote the adoption of a saving commitment product new to our study population. A random set of participants are targeted by our promotional campaign. We test whether the diffusion of the product among untargeted participants operates mostly via information sharing from the former to the latter, or through peer pressure from targeted participants incentivized to bring other participants to take-up the product. If take-up is higher in information villages than in peer-pressure villages, we will conclude that social learning is the main channel of diffusion. If, in contrast, take-up is higher in peer-pressure villages, we will conclude that mimicry or conformism is the main channel of diffusion. The outcome of the experiment has strong policy implications with broad applicability to developing and developed countries beyond the specific product that we provide in our setting