Identity and Social Distance in Friendship Formation
AbstractWe analyze a network formation model where agents belong to different communities. Both individual benefits and costs depend on direct as well as indirect connections. Benefits of an indirect connection decrease with distance in the network while the cost of a link depends on the type of agents involved. Two individuals from the same community always face a low linking cost and the cost of forming a relationship for two individuals of different communities diminishes with the rate of exposure of each of them to the other community. We derive a number of results with regard to equilibrium networks. In particular, socialization among the same type of agents can be weak even if the within-type link cost is very low and oppositional identity patterns can arise for a wide range of parameters. Our model also suggests that policies aiming at reducing segregation are socially desirable only if they reduce the within-community cost differential by a sufficiently large amount.
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Bibliographic InfoPaper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2011:13.
Length: 52 pages
Date of creation: 01 Apr 2011
Date of revision:
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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
Web page: http://www.ne.su.se/
More information through EDIRC
networks; identity; homophily; social norms;
Find related papers by JEL classification:
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-09 (All new papers)
- NEP-EVO-2011-04-09 (Evolutionary Economics)
- NEP-NET-2011-04-09 (Network Economics)
- NEP-SOC-2011-04-09 (Social Norms & Social Capital)
- NEP-URE-2011-04-09 (Urban & Real Estate Economics)
Please 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.:
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"Diversity and Popularity in Social Networks,"
1475, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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- MOSSAY, Pascal & PICARD, Pierre M., 2013.
"Spatial segregation and urban structure,"
CORE Discussion Papers
2013019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Pierre M. Picard & Pascal Mossay, 2013. "Spatial Segregation and Urban Structure," CREA Discussion Paper Series 13-03, Center for Research in Economic Analysis, University of Luxembourg.
- Pascal MOSSAY & Pierre PICARD, 2013. "Spatial Segregation and Urban Structure," Discussion papers 13056, Research Institute of Economy, Trade and Industry (RIETI).
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