We develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to his/her Katz-Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual, but puts less weight to his/her...

This paper proposes a model of network interactions in the interbank market. Our innovation is to model systemic risk in the interbank network as the propagation of incentives or strategic behavior rather than the propagation of losses after default. Transmission in our model is not based on...

Differences between black and white students in Britain are investigated. If black parents would invest in education as much as white parents do, the racial test score gap in mathematics and reading would be reduced by 7 and 9%.

The aim of this paper is to investigate whether weak ties play an important role in explaining criminal activities. We first develop a model where individuals learn about crime opportunities by interacting with other peers. These interactions can take the form of either strong or weak ties. We...

This paper analyses the interplay between social structure and information exchange in two competing activities, crime and labor. We consider a dynamic model in which individuals belong to mutually exclusive two-person groups, referred to as dyads. Two individuals belonging to the same dyad hold...

We develop a dynamic model of identity formation that explains why ethnic minorities may choose to adopt oppositional identities (i.e. some individuals may reject or not the dominant culture) and why this behavior may persist over time. We first show that the prevalence of an oppositional...