This paper investigates peer effects on firm managers’ decisions. We invited 131
randomly selected firm representatives to three one-day seminars on export
promotion. We found that peers’ invitation in the seminars has a positive effect
on firms' participation. We distinguish between peers’ invitation on the same day
and other days, finding that the former has a positive effect while the latter has
no significant effect. These results imply that peer effects arise mostly through a
reduction of psychological cost of participation. Our results suggest that multiple
equilibria in the share of participants within each network of firms may emerge.