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 …

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 …

exists a pairwise stable network, which is also efficient. We show that all pairwise stable networks are efficient, and hence … placing its data on others’ storage devices, given the prevailing data loss rate in the network. The cost function of an agent … captures the cost that the agent incurs to maintain links in the network. With this utility function, we analyze what network …

networks interesting to social scientists. We discuss network formation, as well as interactions between peoples' behaviors …We discuss social network analysis from the perspective of economics. We organize the presentation around the theme of … within a given network, and the implications in a variety of settings. Finally, we highlight some empirical challenges …