Social networking and individual outcomes beyond the mean field case

Yannis M. Ioannides*, Adriaan R. Soetevent

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

10 Citations (Scopus)

Abstract

We study individually optimized continuous outcomes in a dynamic environment in the presence of social interactions, and where the interaction topology may be either exogenous and time varying, or endogenous. The model accommodates more general social effects than those of the mean-field type. We address endogenous networking by assuming that each individual chooses the weights she attaches to the characteristics and the decisions of other agents. This amounts to choosing the elements of a row of a weighted adjacency matrix. Endogenous social networking thus involves simultaneity between decisions and patterns of directed social interactions. (c) 2007 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)369-390
Number of pages22
JournalJournal of Economic Behavior & Organization
Volume64
Issue number3-4
DOIs
Publication statusPublished - 2007
Externally publishedYes
EventWorkshop on Networks, Aggregation and Markets - Marseilles, France
Duration: 20-Jun-200521-Jun-2005

Keywords

  • social interactions
  • social networks
  • neighborhood effects
  • endogenous networking
  • social intermediation
  • econometric identification
  • strong versus weak ties
  • value of social connections
  • ECONOMIC NETWORKS
  • PREFERENCES
  • EQUILIBRIA
  • MODEL

Cite this