Consumer litigation funding (CLF) provides non-recourse cash advances to consumer plaintiffs pursuing a tort complaint. This paper examines how access to this funding impacts outcomes in the legal system. Using exogenous variation in access to CLF resulting from staggered state- level law...

This paper develops a model for the estimation and analysis of demand in the context of social interactions. Decisions made by a group of customers are modeled to be an equilibrium outcome of an empirical discrete game, such that all group members must be satisfied with chosen outcomes. The...

In this paper, we use the Consumer Expenditure Survey (CEX) from the Bureau of Labor Statistics (BLS), to estimate the magnitude of peer effect using a two-part model with instrument variables to overcome the endogeneity and censored data issues. We find that a $1.00 increase in peers’ average...

Demonstrating compelling causal evidence of the existence and strength of peer to peer influence has become the holy grail of modern research in online social networks. In these networks, it has been consistently demonstrated that user characteristics and behavior tend to cluster both in space...

We develop a dynamic model of discrete choice that incorporates peer effects into random consideration sets. We characterize the equilibrium behavior and study the empirical content of the model. In our setup, changes in the choices of friends affect the distribution of the consideration sets....