TY  - RPRT
        AU  - Drago, Francesco
AU  - Mengel, Friederike
AU  - Traxler, Christian
        TI  - Compliance Behavior in Networks: Evidence from a Field Experiment
        PY  - 2015/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9443
        UR  - https://www.iza.org/index.php/publications/dp9443
        AB  - This paper studies the spread of compliance behavior in neighborhood networks involving over 500,000 households in Austria. We exploit random variation from a field experiment which varied the content of mailings sent to potential evaders of TV license fees. Our data reveal a strong treatment spillover: 'untreated' households, who were not part of the experimental sample, are more likely to switch from evasion to compliance in response to the mailings received by their network neighbors. We analyze the spillover within a model of communication in networks based on DeGroot (1974). Consistent with the model, we find that (i) the spillover increases with the treated households' eigenvector centrality and that (ii) local concentration of equally treated households produces a lower spillover. These findings carry important implications for enforcement policies.
        KW  - spillover
KW  - social learning
KW  - neighborhood networks
KW  - evasion
KW  - field experiment
        ER  -