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The Economic Consequences of Social Network Structure

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  • Matthew O. Jackson
  • Brian Rogers
  • Yves Zenou

Abstract

We survey the literature on the economic consequences of the structure of social networks. We develop a taxonomy of ‘macro’ and ‘micro’ characteristics of social inter-action networks and discuss both the theoretical and empirical findings concerning the role of those characteristics in determining learning, diffusion, decisions, and resulting behaviors. We also discuss the challenges of accounting for the endogeneity of networks in assessing the relationship between the patterns of interactions and behaviors.

Suggested Citation

  • Matthew O. Jackson & Brian Rogers & Yves Zenou, 2016. "The Economic Consequences of Social Network Structure," Monash Economics Working Papers 45-16, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2016-45
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    More about this item

    Keywords

    Social networks; social economics; homophily; diffusion; social learning; contagion; centrality measures; endogeneity; network formation.;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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