A Framework for the Study of Individual Behavior and Social Interactions
Recent work in economics has begun to integrate sociological ideas onto the modelling of individual behavior. In particular, this new approach emphasizes how social context and social interdependences influence the ways in which individuals make choices. This paper provides an overview of an approach to integrating theoretical and empirical analysis of such environments. The analysis is based on a framework due to Brock and Durlauf (2000a, 2000b). Empirical evidence on behalf of this perspective is assessed and some policy implications are explored.
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