Girardian sentences to ponder

We also find that stronger peer effects are exerted by more price-sensitive individuals. This positive correlation suggests that the elasticity of aggregate demand is substantially larger than the elasticity of individual demand. Through this channel, peer effects reduce firms’ markups and, in many models, contribute to higher consumer surplus and more efficient resource allocation.

That is from a new NBER working paper by Michael Bailey, Drew M. Johnston, Theresa Kuchler, Johannes Stroebel, and Arlene Wong.

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