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The economics of social networks

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Author Info
Jackson, Matthew O.

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Abstract

The science of social networks is a central field of sociological study, a major application of random graph theory, and an emerging area of study by economists, statistical physicists and computer scientists. While these literatures are (slowly) becoming aware of each other, and on occasion drawing from one another, they are still largely distinct in their methods, interests, and goals. Here, my aim is to provide some perspective on the research from these literatures, with a focus on the formal modeling of social networks and the two major types of models: those based on random graphs and those based on game theoretic reasoning. I highlight some of the strengths, weaknesses, and potential synergies between these two network modeling approaches.

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File URL: http://www.hss.caltech.edu/SSPapers/sswp1237c.pdf
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Publisher Info
Paper provided by California Institute of Technology, Division of the Humanities and Social Sciences in its series Working Papers with number 1237.

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Length: 86 pages
Date of creation: Aug 2005
Date of revision:
Publication status: Published in Advances in Economics & Econometrics, Theory & Applications: Ninth World Congress of the Econometric Society, ed. by Richard Blundell, Whitney Newey, and Torsten Persson. Cambridge University Press, 2006, Chap. 1, Vol. 1, pg. 1-56.
Handle: RePEc:clt:sswopa:1237

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Postal: Working Paper Assistant, Division of the Humanities and Social Sciences, 228-77, Caltech, Pasadena CA 91125
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Related research
Keywords: networks; social networks; network games; network formation; game theory;

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Cited by:
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  1. Marco A. Marini, 2007. "An Overview of Coalitions and Networks Formation Models for Economic Applications," Working Papers 0707, CREI Università degli Studi Roma Tre, revised 2007. [Downloadable!]
  2. Sudipta Sarangi & Pascal Billand & Christophe Bravard, . "Heterogeneity in Nash Networks," Departmental Working Papers 2006-18, Department of Economics, Louisiana State University. [Downloadable!]
  3. Margherita Comola, 2008. "Educational programs in rural Nepal: Peer communication and information spillovers," PSE Working Papers 2008-73, PSE (Ecole normale supérieure). [Downloadable!]
  4. Domenico Delli Gatti & Mauro Gallegati & Bruce C. Greenwald & Alberto Russo & Joseph E. Stiglitz, 2008. "Financially Constrained Fluctuations in an Evolving Network Economy," NBER Working Papers 14112, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Margherita Comola, 2008. "The network structure of informal arrangements: Evidence from rural Tanzania," PSE Working Papers 2008-74, PSE (Ecole normale supérieure). [Downloadable!]
  6. Stephen Millard, 2007. "The foundations of money, payments and central banking: A review essay," Money Macro and Finance (MMF) Research Group Conference 2006 106, Money Macro and Finance Research Group. [Downloadable!]
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  9. Erzo G.J. Luttmer, 2006. "Consumer search and firm growth," Working Papers 645, Federal Reserve Bank of Minneapolis. [Downloadable!]
  10. Domenico Delli Gatti & Mauro Gallegati & Bruce Greenwald & Alberto Russo & Joseph Stiglitz, 2009. "Business fluctuations and bankruptcy avalanches in an evolving network economy," Journal of Economic Interaction and Coordination, Springer, vol. 4(2), pages 195-212, November. [Downloadable!] (restricted)
  11. Pramila Krishnan & Emanuela Sciubba, 2006. "Links and Architecture in Village Networks," Birkbeck Working Papers in Economics and Finance 0614, Birkbeck, Department of Economics, Mathematics & Statistics. [Downloadable!]
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  12. Pradeep Dubey & Rahul Garg & Bernard De Meyer, 2006. "Competing for Customers in a Social Network," Levine's Bibliography 321307000000000685, UCLA Department of Economics. [Downloadable!]
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  13. Celen, Bogachan & Hyndman, Kyle, 2006. "Endogenous Network Formation In the Laboratory," MPRA Paper 1440, University Library of Munich, Germany. [Downloadable!]
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  14. Jacob K. Goeree & Arno Riedl & Aljaz Ule, 2005. "In Search of Stars: Network Formation among Heterogeneous Agents," IZA Discussion Papers 1754, Institute for the Study of Labor (IZA). [Downloadable!]
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  15. David Frachisse & Pascal Billand, 2008. "The Sixth Framework Program as an Affiliation Network: Representation and Analysis," Working Papers 2008.32, Fondazione Eni Enrico Mattei. [Downloadable!]
  16. Marco Marini, 2007. "An Overview of Coalition & Network Formation Models for Economic Applications," Working Papers 0712, University of Urbino Carlo Bo, Department of Economics, revised 2007. [Downloadable!]
  17. Jackson, Matthew O. & Rogers, Brian W., 2005. "Search in the formation of large networks: How random are socially generated networks?," Working Papers 1216, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  18. Jeremy C. Stein, 2007. "Conversations Among Competitors," NBER Working Papers 13370, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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