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The Economic Consequences of Social Network Structure

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  • Jackson, Matthew O.

    (Stanford University)

  • Rogers, Brian

    (Washington University)

  • Zenou, Yves

    (Monash University,, Department of Economics,)

Abstract

We survey the literature on the economic consequences of the structure of social networks. We develop a taxonomy of `macro' and `micro' characteristics of social interaction 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.

Suggested Citation

  • Jackson, Matthew O. & Rogers, Brian & Zenou, Yves, 2016. "The Economic Consequences of Social Network Structure," Working Paper Series 1116, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1116
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    More about this item

    Keywords

    Social networks; Social economics; Homophily; Diffusion; Social learning contagion; Centrality measures; Endogeneity; Network formation;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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