Matching and Network Effects
Abstract
The matching of individuals in teams is a key element in the functioning of an economy. The network of social ties can potentially transmit important information on abilities and reputations and also help mitigate matching frictions by facilitating interactions among "screened" individuals. We conjecture that the probability of two individuals forming a team falls in the distance between the two individuals in the network of existing social ties. The objective of this paper is to empirically test this conjecture. We examine the formation of coauthor relations among economists over a twenty-year period. Our principal finding is that a new collaboration emerges faster among two researchers if they are "closer" in the existing coauthor network among economists. This proximity effect on collaboration is strong: Being at a network distance of 2 instead of 3, for instance, raises the probability of initiating a collaboration by 27%. (JEL: C78, D83, D85) (c) 2010 by the European Economic Association.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by MIT Press in its journal Journal of the European Economic Association.
Volume (Year): 8 (2010)
Issue (Month): 1 (03)
Pages: 203-231
Contact details of provider:
Web page: http://www.mitpressjournals.org/jeea
Order Information:
Web: http://www.mitpressjournals.org/jeea
Related research
Keywords:Other versions of this item:
- Marcel Fafchamps & Marco van der Leij & Sanjeev Goyal, 2009. "Matching and network effects," Working Papers. Serie AD 2009-15, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Sanjeev Goyal & Marcel Fafchamps & Marco J. van der Leij, 2006. "Matching and Network Effects," Economics Discussion Papers 611, University of Essex, Department of Economics.
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, November.
- De Weerdt, Joachim & Dercon, Stefan, 2006.
"Risk-sharing networks and insurance against illness,"
Journal of Development Economics,
Elsevier, vol. 81(2), pages 337-356, December.
- Stefan Dercon & Joachim De Weerdt, 2002. "Risk-sharing networks and insurance against illness," CSAE Working Paper Series 2002-16, Centre for the Study of African Economies, University of Oxford.
- Stefan Dercon & Joachim de Weerdt, 2004. "Risk-Sharing Networks And Insurance Against Illness," Development and Comp Systems 0409019, EconWPA.
- Stefan Dercon & Joachim De Weerdt, 2002. "Risk-sharing Networks and Insurance against illness," Economics Series Working Papers WPS/2002-16, University of Oxford, Department of Economics.
- Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
- Sanjeev Goyal & Marco van der Leij & Jose Luis Moraga, 2004.
"Economics: An Emerging Small World?,"
Tinbergen Institute Discussion Papers
04-001/1, Tinbergen Institute.
- Sanjeev Goyal & Marco J. van der Leij & Jos� Luis Moraga-Gonzalez, 2006. "Economics: An Emerging Small World," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 403-432, April.
- Sanjeev Goyal & Marco van der Leij & José Luis Moraga-Gonzàlez, 2004. "Economics: An Emerging Small World?," Working Papers 2004.84, Fondazione Eni Enrico Mattei.
- Sanjeev Goyal & Marco van der Leij & José Luis Moraga Gonzales, 2004. "Economics: An Emerging Small World?," CESifo Working Paper Series 1287, CESifo Group Munich.
- Paul Oyer, 2006. "Initial Labor Market Conditions and Long-Term Outcomes for Economists," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 143-160, Summer.
- Marcel Fafchamps & Bart Minten, 2000.
"Returns to Social Network Capital among Traders,"
Development Working Papers
145, Centro Studi Luca d\'Agliano, University of Milano.
- Marcel Fafchamps, 2002. "Returns to social network capital among traders," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 173-206, April.
- Marco van der Leij & Sanjeev Goyal, 2006.
"Strong Ties in a Small World,"
Tinbergen Institute Discussion Papers
06-008/1, Tinbergen Institute.
- van der Leij Marco & Goyal Sanjeev, 2011. "Strong Ties in a Small World," Review of Network Economics, De Gruyter, vol. 10(2), pages 1-22, June.
- Marco van der Leij & Sanjeev Goyal, 2010. "Strong ties in a small world," Working Papers. Serie AD 2010-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Fafchamps, Marcel & Lund, Susan, 2003.
"Risk-sharing networks in rural Philippines,"
Journal of Development Economics,
Elsevier, vol. 71(2), pages 261-287, August.
- Marcel Fafchamps & Susan Lund, . "Risk Sharing Networks in Rural Philippines," Working Papers 97014, Stanford University, Department of Economics.
- Garance Genicot & Debraj Ray, 2003.
"Group Formation in Risk--Sharing Arrangements,"
Review of Economic Studies,
Wiley Blackwell, vol. 70(1), pages 87-113, January.
- Garance Genicot & Debraj Ray, 2003. "Group Formation in Risk-Sharing Arrangements," Review of Economic Studies, Oxford University Press, vol. 70(1), pages 87-113.
- Marcel Fafchamps & Flore Gubert, 2005.
"The Formation of Risk Sharing Networks,"
Working Papers
DT/2005/13, DIAL (Développement, Institutions et Mondialisation).
- Fafchamps, Marcel & Gubert, Flore, 2007. "The formation of risk sharing networks," Journal of Development Economics, Elsevier, vol. 83(2), pages 326-350, July.
- Gubert, Flore & Fafchamps, Marcel, 2007. "The Formation of Risk Sharing Networks," Open Access publications from Université Paris-Dauphine urn:hdl:123456789/4392, Université Paris-Dauphine.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Cilem Selin Hazir, 2011. "Conceptualizing the Role of Geographical Proximity in Project Based R&D Networks: A Literature Survey," ERSA conference papers ersa11p1616, European Regional Science Association.
- Ernest Miguelez, 2013. "How does geographical mobility of inventors influence network formation?," WIPO Economics & Statistics Series 7, World Intellectual Property Organization - Economics and Statistics Division, revised Apr 2013.
- Marco van der Leij & Jaromir Kovarik, 2012.
"Risk aversion and social networks,"
Working Papers. Serie AD
2012-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Jaromir Kovarik & Marco J. van der Leij, 2011. "Risk Aversion and Social Networks," Tinbergen Institute Discussion Papers 11-072/1, Tinbergen Institute.
- Matthias Krapf, 2012. "Age and Complementarity in Scientific Collaboration," Working Paper Series of the Department of Economics, University of Konstanz 2012-18, Department of Economics, University of Konstanz.
- Ernest Miguélez, 2012. "How do geographically mobile innovators influence network formation?," Papers in Evolutionary Economic Geography (PEEG) 1208, Utrecht University, Section of Economic Geography, revised May 2012.
- Lorenzo Cassi & Anne Plunket, 2010.
"The determinants of co-inventor tie formation: proximity and network dynamics,"
Papers in Evolutionary Economic Geography (PEEG)
1015, Utrecht University, Section of Economic Geography, revised Nov 2010.
- Cassi, Lorenzo & Plunket, Anne, 2010. "The determinants of co-inventor tie formation: proximity and network dynamics," MPRA Paper 27303, University Library of Munich, Germany.
- Cassi, Lorenzo & Plunket, Anne, 2012. "Research collaboration in co-inventor networks: combining closure,bridging and proximities," MPRA Paper 39481, University Library of Munich, Germany.
- Cilem Selin Hazir & Corinne Autant-Bernard, 2012. "Using Affiliation Networks to Study the Determinants of Multilateral Research Cooperation Some empirical evidence from EU Framework Programs in biotechnology," Working Papers 1212, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Berger, Allen N. & Kick, Thomas & Koetter, Michael & Schaeck, Klaus, 2013.
"Does it pay to have friends? Social ties and executive appointments in banking,"
Journal of Banking & Finance,
Elsevier, vol. 37(6), pages 2087-2105.
- Berger, Allen N. & Kick, Thomas & Koetter, Michael & Schaeck, Klaus, 2011. "Does it pay to have friends? Social ties and executive appointments in banking," Discussion Paper Series 2: Banking and Financial Studies 2011,18, Deutsche Bundesbank, Research Centre.
- Yann Bramoullé & Bernard Fortin, 2009. "The Econometrics of Social Networks," Cahiers de recherche 0913, CIRPEE.
- Michael Koenig, 2012. "The Formation of Networks with Local Spillovers and Limited Observability," Discussion Papers 11-004, Stanford Institute for Economic Policy Research.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:tpr:jeurec:v:8:y:2010:i:1:p:203-231For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

