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Social Networks

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  • De Martí, Joan
  • Zenou, Yves

Abstract

We survey the literature on social networks by putting together the economics, sociological and physics/applied mathematics approaches, showing their similarities and differences. We expose, in particular, the two main ways of modeling network formation. While the physics/applied mathematics approach is capable of reproducing most observed networks, it does not explain why they emerge. On the contrary, the economics approach is very precise in explaining why networks emerge but does a poor job in matching real-world networks. We also analyze behaviors on networks, which take networks as given and focus on the impact of their structure on individuals’ outcomes. Using a game-theoretical framework, we then compare the results with those obtained in sociology.

Suggested Citation

  • De Martí, Joan & Zenou, Yves, 2009. "Social Networks," CEPR Discussion Papers 7599, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:7599
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    Citations

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    Cited by:

    1. Marcela Ibáñez, 2010. "Who crops coca and why? The case of Colombian farmers," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 40, Courant Research Centre PEG.
    2. KIRCHSTEIGER, Georg & MANTOVANI, Marco & MAULEON, Ana & VANNETELBOSCH, Vincent, 2011. "Myopic or farsighted? An experiment on network formation," CORE Discussion Papers 2011007, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Michele Pellizzari, 2010. "Do Friends and Relatives Really Help in Getting a Good Job?," ILR Review, Cornell University, ILR School, vol. 63(3), pages 494-510, April.
    4. Machikita, Tomohiro, 2006. "Are Job Networks Localized in a Developing Economy? Search Methods for Displaced Workers in Thailand," IDE Discussion Papers 84, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves & Lee, Lung-Fei, 2011. "Criminal Networks: Who is the Key Player?," Research Papers in Economics 2011:7, Stockholm University, Department of Economics.
    6. Laurent Davezies & Xavier D'Haultfoeuille & Denis Fougère, 2009. "Identification of peer effects using group size variation," Econometrics Journal, Royal Economic Society, vol. 12(3), pages 397-413, November.
    7. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: A Theory," IZA Discussion Papers 3668, Institute for the Study of Labor (IZA).
    8. Atabati, Omid & Farzad, Babak, 2014. "A strategic model for network formation," MPRA Paper 62529, University Library of Munich, Germany.
    9. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: Some Empirics and a Conjecture on the Nature of European Unemployment," IZA Discussion Papers 3669, Institute for the Study of Labor (IZA).
    10. Francis Bloch & Nicolas Quérou, 2008. "Pricing in networks," Working Papers hal-00356356, HAL.

    More about this item

    Keywords

    centrality measures; game theory; network formation; random graph; weak and strong ties.;

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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