Intro -- Contents -- Acknowledgments -- I. The Effect of Social Capital on Market Behavior -- 1. The Importance of Social Interactions -- 2. Social Forces, Preferences, and Complementarity -- 3. Are Choices "Rational" When Social Capital Is Important? -- II. The Formation of Social Capital -- 4....

Economists assume that people make choices based on their preferences and their budget constraints. The preferences and values of others play no role in the standard economic model. This feature has been sharply criticized by other social scientists, who believe that the choices people make are...