Peer group

A peer group is a group of approximately the same age, social status, and interests. Generally, people are relatively equal in terms of power when they interact with peers.

Developmental Psychology

Developmental psychologists Vygotsky, Piaget, and Sullivan have all argued that peer relationships provide a unique context for cognitive, social, and emotional development, with equality, reciprocity, cooperation, and intimacy maturing and enhancing children's reasoning abilities and concern for others. Modern research echoes these sentiments, showing that social and emotional gains are indeed provided by peer interaction.

Peer pressure

The term 'peer pressure' is often used to describe instances where an individual feels indirectly pressured into changing their behaviour to match that of their peers. Taking up smoking or consuming alcohol underage are two of the best known examples.


A peer group in finance is any equity, mutual fund, or financial instrument that relates to another equity, mutual fund, or financial instrument within its respective asset class in terms of investment style, industry, or underlying asset composition.


Further reading

  • An evolutionary perspective on children's motivation in the peer group. International Journal of Behavioral Development, 19(1), 53-73. Full text
  • Bona Fide Group Theory: A descriptive format for understanding group dynamics. Theory Overview

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