This paper formalizes a widely discussed peer effect entitled 'acting white'. 'Acting White' is modeled as a two audience signaling quandary: signals that induce highe wages can be signals that induce peer group rejection. Without peer effects, the equilibrium involve all ability types choosing...

Frontmatter -- Contents -- Preface -- PART I. BACKGROUND AND FUNDAMENTALS OF NETWORK ANALYSIS -- PART II. MODELS OF NETWORK FORMATION -- PART III. IMPLICATIONS OF NETWORK STRUCTURE -- PART IV. METHODS, TOOLS, AND EMPIRICAL ANALYSES -- Afterword -- Bibliography -- Index

Previous allocation rules for network games, such as the Myerson Value, implicitly or explicitly take the network structure as fixed. In many situations, however, the network structure can be altered by players. This means that the value of alternative network structures (not just sub-networks)...