Because of You I Did Not Give Up - How Peers Affect Perseverance
33 Pages Posted: 4 Jun 2016 Last revised: 22 Dec 2020
Date Written: August 1, 2016
Various empirical papers have shown that peers affect productivity and behavior in the workplace. However, the mechanisms through which peers influence each other are still largely unknown. In this laboratory experiment we study a situation in which individuals might look at their peers' behavior to motivate themselves to endure in a task that requires perseverance. We test the impact of unidirectional peer effects under individual monetary incentives, controlling for ability and tactics. We find that peers significantly increase their observers' perseverance, while knowing about being observed does not significantly affect behavior. In a second experiment we investigate the motives to self-select into the role of an observing or an observant subject and what kind of peers individuals deliberately choose. Our findings provide first insights on the perception of peer situations by individuals and new empirical evidence on how peer groups emerge.
Keywords: grit, perseverance, laboratory experiment, peer effects, real effort
JEL Classification: C91, D03, M50, J24
Suggested Citation: Suggested Citation