Intra-Household Peer Effects in Smartphone Adoption

Minjung Park, Jungwon Yeo

Research output: Contribution to journalArticlepeer-review


This paper examines intra-household peer effects in the adoption of smartphones using unique South Korean panel data. Consistent estimation of peer effects in this setting needs to address two key challenges: homophily and endogenous sample attrition. We address both challenges and obtain consistent estimates of peer effects, by first-differencing the individual-level panel data and then using longer differences of the independent variables as instruments. The estimation results show that an individual becomes much more likely to adopt a smartphone if other household members have previously adopted one. The analysis also reveals that failure to account for endogenous attrition of individuals after product adoption would lead to a significant under-estimation of peer effects.

Original languageEnglish
Pages (from-to)1-16
Number of pages16
JournalInternational Economic Journal
Issue number1
StatePublished - 2023

Bibliographical note

Funding Information:
Jungwon Yeo is grateful for the financial support by a 2-Year Research Grant of Pusan National University [grant number 202009670003]. The usual disclaimer applies. We greatly thank the anonymous reviewers for their insightful comments and highly constructive suggestions.

Publisher Copyright:
© 2023 Korea International Economic Association.


  • endogenous sample attrition
  • estimation of panel data models
  • Peer effects
  • smartphone adoption


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