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Local Interactions

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  • Onur Ozgur

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. Les interactions locales concernent les phénomènes socio-économiques où les choix des individus sont influencés par les choix des autres qui sont proches d'eux socialement ou géographiquement. Cela représente une image assez juste de l'expérience humaine. De plus, puisque les interactions sociales sont en fait des externalités particulières, leur présence implique typiquement l'intervention gouvernementale. Dans cet article, je présente la littérature théorique récente sur les interactions locales et propose diverses avenues de recherche.

Suggested Citation

  • Onur Ozgur, 2010. "Local Interactions," CIRANO Working Papers 2010s-37, CIRANO.
    • Handle: RePEc:cir:cirwor:2010s-37
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    File URL: https://cirano.qc.ca/files/publications/2010s-37.pdf
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    References listed on IDEAS

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    1. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521818728, September.
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    7. Mathias Dewatripont & Lars Peter Hansen & Stephen Turnovsky, 2003. "Advances in Economics and Econometrics: Theory and Applications, Eighth World Congress," ULB Institutional Repository 2013/176003, ULB -- Universite Libre de Bruxelles.
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    More about this item

    Keywords

    Conformity; externalities; local interactions; Markov perfect equilibrium; multiple equilibria; rational expectations; social interactions; social multiplier; strategic complementarities.; Anticipations rationales; conformité; équilibre de Markov parfait; équilibres multiples; externalités; interactions locales; interactions sociales; multiplicateur social; complémentarités stratégiques.;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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