DP10406 The Economic Consequences of Social Network Structure
|Author(s):||Matthew O. Jackson, Brian Rogers, Yves Zenou|
|Publication Date:||February 2015|
|Keyword(s):||centrality measures, contagion, diffusion, endogeneity, homophily, network formation., social economics, social learning, Social networks|
|JEL(s):||C72, D85, L14, Z13|
|Programme Areas:||Public Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=10406|
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.