We model network formation and interactions under a unified framework by considering that individuals anticipate the effect of network structure on the utility of network interactions when choosing links. There are two advantages of this modeling approach: first, we can evaluate whether network...

We develop two different social network models with different economic foundations. In the local-aggregate model, it is the sum of friends' efforts in some activity that affects the utility of each individual while, in the local-average model, it is costly to deviate from the average effort of...

We develop a unified model embedding different behavioral mechanisms of social interactions and design a statistical model selection test to differentiate between them in empirical applications. This framework is applied to study peer effects in education (effort in studying) and sport...

This work considers the estimation of a network model with sampled networks. Chandrasekhar and Lewis (2011) show that the estimation with sampled networks could be biased due to measurement error induced by sampling and propose a bias correction by restricting the estimation to sampled nodes to...

In this paper, we investigate the impact of peers on own outcomes where all agents embedded in a network choose more than one activity. We develop a simple network model that illustrates these issues. We differentiate between the ‘seemingly unrelated’ simultaneous equations model where...

We develop an unified model embedding different behavioral mechanisms of social interactions and design a statistical model selection test to discriminate between them in empirical applications. This framework is applied to study peer effects in education and delinquent behavior for adolescents...