If I can do it, so can you! Peer effects on perseverance

Successful performance – be it in school, at the job, or in sports activities – requires perseverance, i.e., persistent work on a demanding task. We investigate in a controlled laboratory experiment how an individual's social environment affects perseverance. We find evidence for two kinds of peer effects: being observed by a peer can postpone the decision to give up, while observing a peer can be informative and have more sustainable effects. In particular, we show that successful peers affect perseverance positively if they communicate their success in a motivating way and negatively otherwise. Our experimental results suggest that peers affect perseverance indirectly, via influencing self-confidence.