Scandinavian Working Papers in Economics
Working Paper Series,
Research Institute of Industrial Economics
No 1116: The Economic Consequences of Social Network Structure
Matthew O. Jackson (), Brian Rogers () and Yves Zenou ()
Additional contact information
Matthew O. Jackson: Stanford University, Postal: Department of Economics
Brian Rogers: Washington University, Postal: Department of Economics
Yves Zenou: Monash University,, Department of Economics,, Postal: Stockholm University and the Research Institute of Industrial Economics (IFN), P.O. Bo 55665, SE-102 15 Stockholm, Sweden
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
65 pages, March 7, 2016
Full text files
wp1116.pdf
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