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The Old-Boy Network and the Young-Gun Effect

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Author Info
Taylor, Curtis R

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Abstract

A model of an exclusive group or class whose membership is governed by personal contact and interaction is studied. Members of this old-boy network attempt to shield themselves from transacting with opportunistic or incompetent individuals by dealing only infrequently with unproven nonmembers. This injures the unproven but qualified agents not in the network. Moreover, because recruitment of a new member creates a public good for network members, too little recruiting is performed in equilibrium. Copyright 2000 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Publisher Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 41 (2000)
Issue (Month): 4 (November)
Pages: 871-91
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Handle: RePEc:ier:iecrev:v:41:y:2000:i:4:p:871-91

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  1. Marcel Fafchamps, 2004. "Social Capital and Development," Economics Series Working Papers 214, University of Oxford, Department of Economics. [Downloadable!]
  2. Felipe Balmaceda, 2004. "Network Formation and Cooperation," Econometric Society 2004 Latin American Meetings 208, Econometric Society. [Downloadable!]
  3. repec:bep:thetop:v:2:y:2002:i:1:p:1045-1045 is not listed on IDEAS
  4. Rafael Rob & Huanxing Yang, 2006. "Long Term Relationships as Safeguards," Levine's Working Paper Archive 618897000000001039, David K. Levine. [Downloadable!]
  5. W. Bentley MacLeod, 2006. "Reputations, Relationships and the Enforcement of Incomplete Contracts," IZA Discussion Papers 1978, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-11-21.


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