This paper describes a range of methods which have been proposed to study interactions in economic and social contexts. By interactionsk, we refer to interdependences between individual decisions which are not mediated by markets. These types of models have been employed to understand phenonmena ranging from the effect of neighborhoods on the lofe prospects of children to the evolution of political party platforms. We provide a general choice-based framework for modelling such interactions which subsumes a number of specific models which have been studied. This framework illustrates the relationship between interactions-based models and models in statistical mechanics. Orr analysis is then extended to the econometrics of these models, with an emphasis on the identification of group-level influences on individual behavior. Finally, we review some of the empirical work on interactions which has appeared in the social science literature.
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|Date of creation:||May 2000|
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Web page: http://www.santafe.edu/sfi/publications/working-papers.html
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