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It Takes a Village: Peer Effects and Externalities in Technology Adoption
Author(s) -
Ferrali Romain,
Grossman Guy,
Platas Melina R.,
Rodden Jonathan
Publication year - 2020
Publication title -
american journal of political science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 6.347
H-Index - 170
eISSN - 1540-5907
pISSN - 0092-5853
DOI - 10.1111/ajps.12471
Subject(s) - externality , politics , network effect , early adopter , business , quality (philosophy) , value (mathematics) , public economics , public relations , marketing , economics , political science , microeconomics , industrial organization , computer science , philosophy , epistemology , machine learning , law
Do social networks matter for the adoption of new forms of political participation? We develop a formal model showing that the quality of communication that takes place in social networks is central to understanding whether a community will adopt forms of political participation where benefits are uncertain and where there are positive externalities associated with participation. Early adopters may exaggerate benefits, leading others to discount information about the technology's value. Thus, peer effects are likely to emerge only when informal institutions support truthful communication. We collect social network data for 16 Ugandan villages where an innovative mobile‐based reporting platform was introduced. Consistent with our model, we find variation across villages in the extent of peer effects on technology adoption, as well as evidence supporting additional observable implications. Impediments to social diffusion may help explain the varied uptake of new and increasingly common political communication technologies around the world.