Discussion paper

DP10406 The Economic Consequences of Social Network Structure

We survey the literatures on the economic consequences of the structure of social networks. We develop a taxonomy of 'macro' and 'micro' characteristics of social inter-action 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.

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Citation

Zenou, Y, M Jackson and B Rogers (2015), ‘DP10406 The Economic Consequences of Social Network Structure‘, CEPR Discussion Paper No. 10406. CEPR Press, Paris & London. https://cepr.org/publications/dp10406