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Research Institute of Industrial Economics (IFN) Working Paper Series

No 1116:
The Economic Consequences of Social Network Structure

Matthew O. Jackson (), Brian Rogers () and Yves Zenou ()

Abstract: We survey the literature on the economic consequences of the structure of social networks. We develop a taxonomy of `macro' and `micro' characteristics of social interaction networks and discuss both the theoretical and empirical findings concerning the role of those characteristics in determining learning, diffusion, decisions, and resulting behaviors. We also discuss the challenges of accounting for the endogeneity of networks in assessing the relationship between the patterns of interactions and behaviors.

Keywords: Social networks; Social economics; Homophily; Diffusion; Social learning contagion; Centrality measures; Endogeneity; Network formation; (follow links to similar papers)

JEL-Codes: C72; D85; L14; Z13; (follow links to similar papers)

65 pages, March 7, 2016

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