This paper applies for the first time power index analysis to the famous Krackhardt’s kite social network by imposing a weighted voting game on the given network structure. It compares the results of this analysis, derived by applying the Public Good Index and the Public Value, with the...

The following analysis demonstrates that network efficiency is a very delicate matter. Neither the restriction to suitable core-subnets, nor intelligent enlargements guarantee efficient results in any case. For instance, the numerical example in Myerson (1977) contains a prisoners’ dilemma...

We provide an overview and synthesis of the literature on how social networks influence behaviors, with a focus on diffusion. We discuss some highlights from the empirical literature on the impact of networks on behaviors and diffusion. We also discuss some of the more prominent models of...

In this chapter, I provide an overview of research on social networks and their role in shaping behavior and economic outcomes. I include discussion of empirical and theoretical analyses of the role of social networks in markets and exchange, learning and diffusion, and network games. I also...

The present paper proposes a simple model for studying the interplay between self-enforcing cooperation and network formation. In particular, the model provides an answer to the ancient question of how cooperative behavior emerges in different communities and how the possibility of behaving...

We study a strategic model of community formation on networks. Starting from a seed community member, the process of community formation is sequential, with infinitely-patient and forward-looking agents making strategic offers to their neighbors. Each agent makes an irreversible binary choice,...

A group of agents with ex-ante independent and identically uncertain quality compete for a prize, awarded by a principal. Agents may possess evidence about the quality of those they share a social connection with (neighbours), and themselves. In one equilibrium, adversarial disclosure of...

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...

We present a model where agents care about their neighbors' actions and can pressure them to take certain actions. Exerting pressure is costly for the exerting agent and it can impact the pressured agents by either lowering the cost of taking the action (which we call "positive pressure" ) or...

This paper introduces the choice of identity characteristics, and, commitments to these characteristics, in a network formation model where links costs are shared. Players want to link to the largest group given that linking costs are decreasing (increasing) in commitments for same (different)...