Smoking, like many health-related behaviors, has "social" aspects. The smoking habits of my neighbors are likely to shape my own smoking habits, due to what is known in economics as “peer effects.” These complementarities in behavior may result from emulation, joint consumption, conformism,...

We consider a model where each individual (or ethnic minority) is embedded in a network of relation-ships and decides whether or not she wants to be assimilated to the majority norm. Each individual wants her behavior to agree with her personal ideal action or norm but also wants her behavior to...

Many types of economic and social activities involve significant behavioral complementarities (peer effects) with neighbors in the social network. The same activities often exert externalities that cumulate in "stocks" affecting agents' welfare and incentives. For instance, smoking is subject to...