, then expected homophily in the contact network structure induces different career choices for individuals from different …We develop a social network model of occupational segregation between different social groups, generated by the … existence of positive inbreeding bias among individuals from the same group. If network referrals are important for job search …

We examine how three different communication processes operating through social networks are affected by homophily … - the tendency of individuals to associate with others similar to themselves. Homophily has no effect if messages are … broadcast or sent via shortest paths; only connection density matters. In contrast, homophily substantially slows learning based …

The paper studies the impact of homophily on the optimal strategies of a monopolist, whose marketing campaign of new … product relies on a word of mouth communication. Homophily is a tendency of people to interact more with those who are similar … to them. In the model there are two types of consumers embedded into a social network, which differ in friendship …

This paper reports results from a laboratory experiment on network formation among heterogeneous agents. The … experimental design extends the Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by allowing … private information. In all treatments, the (efficient) equilibrium network has a “star” structure. With homogeneous agents …

We make four main contributions to the theory of network formation. (1) The problem of network formation with … farsighted agents can be formulated as an abstract network formation game. (2) In any farsighted network formation game the … and persist if individuals behave farsightedly in playing the network formation game. (3) A von Neumann Morgenstern stable …

We examine the formation of networks among a set of players whose payoffs depend on the structure of the network. We … network or only on the link itself. A final aspect is whether or not players can pay other players to refrain from forming … related either to accounting for a specific type of externality, or to dealing with the combinatorial nature of network …

implications for contagion risk. In particular, we model a network formation process in the banking system. Banks form links order … to reduce the risk of contagion. The network is formed endogenously and serves as an insurance mechanism. We show that … banks manage to form networks that are resilient to contagion. Thus, in an equilibrium network, the probability of contagion …

. When a 1/2-pairwise stable network exists, it is unique and it coincides with the unique stochastically stable network. To …-pairwise stable set. The 1/2-pairwise stable set exists and is unique. Any stochastically stable network is included in the 1 …/2-pairwise stable set. Thus, any network outside the 1/2-pairwise stable set must be considered as a nonrobust network. We also …

Network structure has a significant role in determining the outcomes of many socioeconomic relationships, including the … antagonistic ones. In this paper we study a situation in which agents, embedded in a network, simultaneously play interrelated … bilateral contest games with their neighbors. Interrelatedness of contests induces complex local and global network effects. We …