Self-control and peer groups: An empirical analysis

- We study the theoretical predictions of the model on self-control in peer groups by Battaglini et al. (2005).
- We exploit the exogenous variation in peer groups generated by high school to college transitions.
- Our evidence is consistent with the key predictions of the theory.

We exploit the exogenous variation in peer groups generated by high school to college transitions to study the theoretical predictions of Battaglini et al.'s (2005) model of self-control in peer groups. We find evidence consistent with the two key predictions of this theory regarding the relationship between an agent's expected level of self-control and the size and composition of his or her social circles: (i) students embedded in social circles have more self-control than those who are alone and their self-control is increasing in the size of their social group; (ii) students' self-control is, however, a non-monotonic hump-shaped function of the average self-control of their friends.