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A Theory of Social Interactions

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Gary S. Becker

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Abstract

This essay incorporates a general treatment of social interactions into the modern theory of consumer demand. Section 1 introduces the topic and explores some of the existing perspectives on social interactions and their importance in the basic structure of wants. In Section 2, various characteristics of different persons are assumed to affect the utility functions of some persons, and the behavioral implications are systematically explored. Section 3 develops further implications and applications in the context of analyzing intra-family relations, charitable behavior, merit goods and multi-persons interactions, and envy and hatred. The variety and significance of these applications is persuasive testimony not only to the importance of social interactions, but also to the feasibility of incorporating them into a rigorous analysis.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0042.

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Date of creation: Jun 1974
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Publication status: published as Becker, Gary S. "A Theory of Social Interactions." Journal of Political Economy, Vol. 82, No. 6, (December 1974), pp. 1063-1093.
Handle: RePEc:nbr:nberwo:0042

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References listed on IDEAS
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.:
  1. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-48, July-Aug.. [Downloadable!] (restricted)
  2. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June. [Downloadable!] (restricted)
  3. Peltzman, Sam, 1973. "The Effect of Government Subsidies-in-Kind on Private Expenditures: The Case of Higher Education," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 1-27, Jan.-Feb.. [Downloadable!] (restricted)
  4. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec.. [Downloadable!] (restricted)
  5. Schwartz, Robert A, 1970. "Personal Philanthropic Contributions," Journal of Political Economy, University of Chicago Press, vol. 78(6), pages 1264-91, Nov.-Dec.. [Downloadable!] (restricted)
  6. Becker, Gary S, 1974. "A Theory of Marriage: Part II," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S11-S26, Part II, . [Downloadable!] (restricted)
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  7. De Tray, Dennis N, 1973. "Child Quality and the Demand for Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S70-95, Part II, . [Downloadable!] (restricted)
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