Field studies of networks have uncovered a preference to befriend people we perceive as similar according to some … dimensions of our identity (“homophily”). Lab studies of network formation games have found that adherence to social norms of … reciprocity and inequity aversion are also drivers of network choices. No study so far has attempted to investigate the role of …

This paper proposes new centrality measures to characterise the 'key class', when agents in a network are sorted into … activity of classes with their position within the partitioned network. The result informs two class-based centrality measures … role-equivalent classes, such that its removal results in an optimal change in the network activity. The notion of role …

exists a pairwise stable network, which is also efficient. We show that all pairwise stable networks are efficient, and hence … placing its data on others’ storage devices, given the prevailing data loss rate in the network. The cost function of an agent … captures the cost that the agent incurs to maintain links in the network. With this utility function, we analyze what network …

, and different network layers. At the individual level, homophilous tendencies are persistent across time and network … malleable characteristics−risk preferences, altruism, study habits, and so on. We find little evidence of assimilation over … those characteristics. We also document the nuanced impact of network connections on changes in Grade Point Average. …

This paper develops a simple model in which a social hierarchy emerges endogenously when agents form a network for …, as well as their value function, increases (strictly) concavely in the total activity of their neighbours in the network …. There exists a unique and stable positive activity equilibrium on exogenous networks under mild conditions. When we …

neighbors in the social network. The same activities often exert externalities that cumulate in stocks affecting agents' welfare … instance, care about their friends' health). In such contexts, the patterns of strategic interaction differ from the network of … a weighted Bonacich centrality index, with weights accounting for distance-two relations. We find that both maximal …

neighbors in the social network. The same activities often exert externalities that cumulate in "stocks" affecting agents … network of social relations, as agents display strategic substitution with distance-two neighbors. We show that behavior is … predicted by a weighted Bonacich centrality index, with weights accounting for distance-two relations. We find that both maximal …

A large literature has studied how peers affect behavior by exploiting the preexisting social network structure only …. What if networks rewire in response to changes in the economic environment, such as a randomized intervention? We exploit a … unique panel dataset that contains detailed information on the network of informal financial transactions before and after a …