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Local Interactions

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  • ÖZGÜR, Onur

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.

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Bibliographic Info

Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 14-2010.

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Length: 69 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:mtl:montec:14-2010

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Related research

Keywords: Conformity; externalities; local interactions; Markov perfect equilibrium; multiple equilibria; rational expectations; social interactions; social multiplier; strategic complementarities;

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  1. de Paula, Áureo, 2009. "Inference in a synchronization game with social interactions," Journal of Econometrics, Elsevier, vol. 148(1), pages 56-71, January.
  2. Blume,L.E. & Durlauf,S.N., 2005. "Identifying social interactions : a review," Working papers 12, Wisconsin Madison - Social Systems.
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