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Global Social Interactions with Sequential Binary Decisions: The Case of Marriage, Divorce, and Stigma

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Author Info

  • Finn Christensen

    ()
    (Department of Economics, Towson University)

  • Juergen Jung

    ()
    (Department of Economics, Towson University)

Abstract

This paper studies global social interactions in a stylized model of marriage and divorce with complementarities across agents. The key point of departure from traditional models of social interactions is that actions are interrelated and sequential. We establish existence and uniqueness results akin to those in traditional models. In contrast to these models, however, we show that the presence of strategic complementarities is no longer sufficient to generate a social multiplier that exceeds one in this environment. Self-fulfilling conformity, whereby a greater desire to conform at the individual level leads to greater homogeneity of choices in the aggregate, is not retained either. Some empirical implications are also discussed.

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File URL: http://www.towson.edu/cbe/economics/workingpapers/2010-01.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Towson University, Department of Economics in its series Working Papers with number 2010-01.

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Length: 38 pages
Date of creation: Jan 2010
Date of revision: Jan 2010
Handle: RePEc:tow:wpaper:2010-01

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Postal: Towson, Maryland 21252-0001
Phone: 410-704-2959
Fax: 410-704-3424
Web page: http://www.towson.edu/cbe/economics/
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Related research

Keywords: Social interactions; social multiplier; self-fulfilling conformity; uniqueness under moderate social influence.;

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