Field studies of networks have uncovered a preference to befriend people we perceive as similar according to some … dimensions of our identity (“homophily”). Lab studies of network formation games have found that adherence to social norms of … reciprocity and inequity aversion are also drivers of network choices. No study so far has attempted to investigate the role of …

I look at the equilibrium effects of homophily in network formation games having positive externalities. I show that … very weak preferences for network effects (such as preference for being part of a clique) may result in very high levels of … homophily at equilibrium. I present an empirical procedure that allows an evaluation of the role of network effects on the …

This paper develops a simple model in which a social hierarchy emerges endogenously when agents form a network for …, as well as their value function, increases (strictly) concavely in the total activity of their neighbours in the network …. There exists a unique and stable positive activity equilibrium on exogenous networks under mild conditions. When we …

in the context of a network formation game (where links can be interpreted as friendships in a social network … acquiring the information with others) through a percolation process over the equilibrium network. Privacy concerns are modeled … mixed-strategy equilibria. Our two main results show that, as in many real-life examples, the resulting equilibrium networks …

We study lobbying in a setting in which decision-makers share resources in a network. Two opposing interest groups …-makers' ideologies as well as the network structure. We characterize the lobbying strategies in various network settings and show that a …' efforts do not neutralize each other and their payoffs and competitive advantages depend on the networks they face. Our …

A large literature has studied how peers affect behavior by exploiting the preexisting social network structure only …. What if networks rewire in response to changes in the economic environment, such as a randomized intervention? We exploit a … unique panel dataset that contains detailed information on the network of informal financial transactions before and after a …

neighbors in the social network. The same activities often exert externalities that cummulate in 'stocks' affecting agents … network of social relations, as agents display strategic substitution with distance-two neighbors. We show that behavior is … predicted by a weighted Bonacich centrality index, with weights accounting for distance-two relations. We find that both maximal …

Social networks are a key factor of success in life, but they are also strongly segmented on gender, ethnicity, and … about how these traits are associated to social networks. Based on unique data that we collected using incentivized … traits that students share, the higher the overall homophily. Then, using network econometrics, we show that the observed …