“…Other disciplines, such as psychology and sociology, have long acknowledged the influence of peers on individual substance use (Cohen, 1977;Kandel, 1978Kandel, , 1996Skog, 1980;Glynn, 1981;McDaniel, 1989, 1992;Crane, 1991;Graham et al, 1991;Brooks-Gunn et al, 1993;Ennet, 1994, 1996). There is no reason, in principle, why social interactions in substance use could not be studied using the standard tools of economic analysis.…”