In a social network, agents have their own reference group that may influence their behavior. In turn, the agents' attributes and their behavior affect the formation and the structure of the social network. We survey the econometric literature on both aspects of social networks and discuss the...

In a social network, agents have their own reference group which may influence their behaviour. In turn, the agents' attributes and their behaviour affect the formation and the structure of the social network. This paper surveys the econometric literature on both aspects of social networks, and...