“…1 For examples, see: Bandiera and Rasul (2006) ;Bayer, Ross, and Topa (2008) ;Bertrand, Luttmer, and Mullainathan (2000) ;Carrell, Malmstrom, and West (2008); Case and Katz (1991) ;Evans, Oates, and Schwab (1992); Gaviria and Raphael (2001) ;Glaeser, Sacerdote, and Scheinkman (1996); Hensvik and Nilsson (2010); Markussen and Røed (2012); Maurin and Moschion (2009) ;Monstad, Propper, and Salvanes (2011);Munshi (2003); and Rege, Telle, and Votruba (2012). 2 See, for example: Babcock et al (2011);Rasul (2009, 2010); Carrell, Fullerton, and West (2009) ;Carrell and Hoekstra (2010) ;Carrell, Hoekstra, and West (2011) ;Carrell, Sacerdote, and West (2011);Cullen, Jacob, and Levitt (2006); Duncan et al (2005); Hanushek et al (2003); Hoxby (2000); Imberman, Kugler, In contrast, we focus on peer influence in naturally occurring groups and exploit variation in the "price" of a social program for a random s...…”