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Local Interactions

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  • Onur Özgür

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Abstract

Local interactions refer to social and economic phenomena where individuals' choices are influenced by the choices of others who are `close' to them socially or geographically. This represents a fairly accurate picture of human experience. Furthermore, since local interactions imply particular forms of externalities, their presence typically suggests government action. I survey and discuss existing theoretical work on economies with local interactions and point to areas for further research. Les interactions locales concernent les phénomènes socio-économiques où les choix des individus sont influencés par les choix des autres qui sont proches d'eux socialement ou géographiquement. Cela représente une image assez juste de l'expérience humaine. De plus, puisque les interactions sociales sont en fait des externalités particulières, leur présence implique typiquement l'intervention gouvernementale. Dans cet article, je présente la littérature théorique récente sur les interactions locales et propose diverses avenues de recherche.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 2010s-37.

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Date of creation: 01 Sep 2010
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Handle: RePEc:cir:cirwor:2010s-37

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Keywords: Conformity; externalities; local interactions; Markov perfect equilibrium; multiple equilibria; rational expectations; social interactions; social multiplier; strategic complementarities.; Anticipations rationales; conformité; équilibre de Markov parfait; équilibres multiples; externalités; interactions locales; interactions sociales; multiplicateur social; complémentarités stratégiques.;

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  1. Aureo de Paula, 2004. "Inference in a Synchronization Game with Social Interactions," PIER Working Paper Archive 07-017, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 May 2007.
  2. Blume,L.E. & Durlauf,S.N., 2005. "Identifying social interactions : a review," Working papers 12, Wisconsin Madison - Social Systems.
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