We investigate within a model of cultural transmission how policies or shocks that affect social diversity within a population affect social cohesion and segregation. We develop the concept of `bridging identity', an individual trait that: (i) positively affects utility in culturally diverse...

This paper uses a multi-dimensional perspective on social capital to investigate how a microfinance institution can enhance the social capital of poor entrepreneurs. Findings show that by creating an environment that encourages frequent meetings and interactions between borrowers, group-based...

The main purpose of this paper is to highlight the different conception of social relations in Chinese Culture and its effect on law of Corporate Governance. In particular this paper first will examine the positive aspects given by the power of social relations to Chinese Corporations, i.e....

We develop a model where workers both choose their residential location (geographical space) and their social interactions (social space). In equilibrium, we show under which condition some individuals reside close to the job center while others live far away from it. Even though the two...

We investigate how adolescents’ social status in their peers' eyes shapes the way they view their social climate in secondary schools. Utilizing novel data on over 10,000 students, we construct comprehensive measures of social status and perceived social climate for each student, including a...

High levels of clustering—the tendency for two nodes in a network to share a neighbor—are ubiquitous in economic and social networks across different applications. In addition, many real-world networks show high payoffs for nodes that connect otherwise separate network regions, representing...

This paper studies whether conformism behavior affects individual outcomes in crime. We present a social network model of peer effects with ex-ante heterogeneous agents and show how conformism and deterrence affect criminal activities. We then bring the model to the data by using a very detailed...

In order to understand the different characteristics observed in real-world networks, one needs to analyze how and why 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...

What is the mechanism that determines market prices of financial assets? The literature of modern finance theory brought out models in order to propose an answer to this question. These models presume that all market participants act strictly rationally. With this very restrictive assumption,...

We survey the literature on social networks by putting together the economics, sociological and physics/applied mathematics approaches, showing their similarities and differences. We expose, in particular, the two main ways of modeling network formation. While the physics/applied mathematics...