“…This literature treats the entire population of past adopters as the reference group for a representative agent's product adoption decision. With access to more disaggregate data on consumer's social networks, the recent empirical literature has used a more nuanced view of the reference group, leveraging social networks based on self-elicitation (Conley and Udry, 2008;Kratzer and Lettl, 2009;Iyengar, van den Bulte, and Valente, 2010;Nair, Manchanda, and Bhatia, 2010); dorm/work location (Sacerdote, 2001;Dufflo and Saez, 2003;Sorensen, 2006); ethnic/cultural proximity (Bertrand, Mullainathan, and Luttmer, 2000;Munshi and Myaux, 2006); or as in the current application, geographic location (Topa, 2001;Arzaghi and Henderson, 2007;Bell and Song, 2007;Manchanda, Xie, and Youn, 2008;Choi, Hui, and Bell, 2010;McShane, Bradlow, and Berger, 2010;Nam, Manchanda, and Chintagunta, 2010;Bollinger and Gillingham, 2011).…”