Social networking
Every day we make simple decisions — what to eat, what to wear — that may be influenced by the views of people around us. But are they? You might have certain tastes because of the influence of your friends — or they might be your friends because you share similar tastes. The same issue exists for larger matters, such as medical decisions, voting, and where we live. Are you affected by peer influence? Or is it just a case of what’s known as homophily, the general association of like-minded people? In practical terms, the difference matters: If you know how people are making decisions, you can figure out whether you need to get their attention directly on, say, a public-health issue, or more indirectly, by targeting a whole network of peers. “Sorting out whether it’s peer effects or homophily will help you decide which of these strategies is most effective,” offers Sinan Aral,...
