Global Social Interactions with Sequential Binary Decisions: The Case of Marriage, Divorce, and Stigma
AbstractThis 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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Bibliographic InfoPaper provided by Towson University, Department of Economics in its series Working Papers with number 2010-01.
Length: 38 pages
Date of creation: Jan 2010
Date of revision: Jan 2010
Social interactions; social multiplier; self-fulfilling conformity; uniqueness under moderate social influence.;
Other versions of this item:
- Christensen Finn & Jung Juergen, 2010. "Global Social Interactions with Sequential Binary Decisions: The Case of Marriage, Divorce, and Stigma," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-37, October.
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D62 - Microeconomics - - Welfare Economics - - - Externalities
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