This paper studies a connections model of network formation in which players are heterogeneous with respect to values as well as the cost of forming links. We start by showing that value heterogeneity is important in determining the level of connectedness of a network, while cost heterogeneity...

This paper studies network formation in settings where players are heterogeneous with respect to benefits as well as the costs of forming links. Our results demonstrate that centrality, center-sponsorship and short network diameter are robust features of equilibrium networks. We find that in a...

Abstract A firm wishes to inform a community of individuals about its product. Information travels within the community because of the social interactions between individuals. We establish that social interactions appear in a firm's payoff as a network multiplier, which is increasing both in the...

Abstract The aim of the special issue is to explore open problems at the frontier of the Economics of Social Networks. The papers in this special issue range across pure and applied theory and empirical investigations, and in this they reflect the richness of on-going research in the economics...

The important role of friends, neighbors and colleagues in shaping individual choices has been brought out in a number of studies over the years. The presence of significant ‘local’ influence in shaping individual behavior suggests that firms, governments and developmental agencies should...

The important role of friends, neighbors and colleagues in shaping individual choices has been brought out in a number of studies over the years. The presence of significant 'local' influence in shaping individual behavior suggests that firms, governments and developmental agencies should...