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We survey the literature on the economic consequences of the structure of social networks. We develop a taxonomy of "macro" and "micro" characteristics of social interaction networks and discuss both the theoretical and empirical findings concerning the role of those characteristics in...
Persistent link: https://www.econbiz.de/10011444460
Persistent link: https://www.econbiz.de/10009577605
) embedded in a network have to decide how much effort they exert in some activity (say education). We show that the more central … minority agents are in the social network, the more they assimilate to the majority culture. We also show that denser networks … tend to favor assimilation so that, for example, it is easier to assimilate in a complete network than in a star …
Persistent link: https://www.econbiz.de/10011336962
We study a coordination game among agents on a network, who choose whether or not to take an action in an uncertain … coordination set if and only if the network is balanced, i.e., the average degree of each subnetwork is no larger than the average … degree of the network. Comparative statics exercises as well as welfare properties are investigated. In particular, we show …
Persistent link: https://www.econbiz.de/10012900481
Although the linear-in-means model is the workhorse model in empirical work on peer effects, its theoretical properties are understudied. In this paper, we investigate how social norms affect individual effort, aggregate effort, and welfare. While individual productivity always positively...
Persistent link: https://www.econbiz.de/10012909443
Although the linear-in-means model is the workhorse model in empirical work on peer effects, its theoretical properties are understudied. In this study, we develop a social-norm model that provides a microfoundation of the linear-in-means model and investigate its properties. We show that...
Persistent link: https://www.econbiz.de/10012859300
Persistent link: https://www.econbiz.de/10012587989
networks form, the impact of network structure on agents' outcomes, and the evolution of networks over time. For this purpose …, we combine a network game introduced by Ballester et al. [2006], where the Nash equilibrium action of each agent is … proportional to her Bonacich centrality, with an endogenous network formation process. Links are formed on the basis of agents …
Persistent link: https://www.econbiz.de/10013144348
Persistent link: https://www.econbiz.de/10012415724
networks in the spatial diffusion of local economic shocks. We develop a network model that shows how a district's level of … prosperity is related to its position in the network. The network model's first-order conditions are used to derive an … underlying network structure can inform us about the potential gains from policies that increase economic activity in specific …
Persistent link: https://www.econbiz.de/10011825329