We conduct a quasi-field experiment in a virtual world environment to investigate the impact of social distance on economic choices. We design trust games with partner selection, in which the proposer chooses between a familiar responder and a stranger with a higher multiplier. When choosing...

We conduct a quasi-field experiment in a virtual world environment to investigate the impact of social distance on economic choices. We design trust games with partner selection, in which the proposer chooses between a familiar responder and a stranger with a higher multiplier. When choosing...

Using a laboratory experiment, we study the evolution of economic networks in the context of fragmented social identity. We create societies in which members can initiate and delete links to others, and then earn payoffs from a public goods game played within their network. We manipulate whether...

I investigate complementarity games played on graphs, which model negative externalities embedded in structures of interaction. On the complete graph, the traditional economic analysis applies: the number of agents playing one strategy is proportional to its payoff. I show that, in general and...

This work studies a strategic game with incomplete information in which a finite number of players simultaneously choose actions and form either unilaterally or bilaterally relationships. The players' payoffs are supermodular in actions but do exhibit neither negative nor positive spillovers;...

Reciprocity is one of the main basic social relations that constitute societies. It consists of being favourable to others because others are favourable to you (and not from an exchange in the strict sense). It rests on three possible rationales: (1) balance (comparison, matching), often related...

While interest in social determinants of individual behavior has led to a rich theoretical literature and many efforts to measure these influences, a mature social econometrics has yet to emerge. This chapter provides a critical overview of the identification of social interactions. We consider...

We provide an overview and synthesis of the literature on how social networks influence behaviors, with a focus on diffusion. We discuss some highlights from the empirical literature on the impact of networks on behaviors and diffusion. We also discuss some of the more prominent models of...

Local interactions refer to social and economic phenomena where individuals' choices are influenced by the choices of others who are close to them socially or geographically. This represents a fairly accurate picture of human experience. Furthermore, since local interactions imply particular...

In this chapter, I provide an overview of research on social networks and their role in shaping behavior and economic outcomes. I include discussion of empirical and theoretical analyses of the role of social networks in markets and exchange, learning and diffusion, and network games. I also...