Known as one of the primary architects of the Black-Scholes model, Myron S. Scholes applied his love of economic research to developing a fundamental tool of valuation that would become the standard in financial markets around the world. Together with fellow pioneers Fischer Black and Robert C....

This paper proposes a tractable model that allows us to analyze how agents' perception of relationships with others determines the structures of networks. In our model, agents are endowed with their own multidimensional characteristics and their payoffs depend on the social distance between...

Using detailed data on a cohort of young Americans who were in their late twenties and early thirties in 2008, we investigate the importance of forces different from economic incentives in nest-leaving decisions. We apply recent methods from social network econometrics to identify the importance...

This paper investigates opinion dynamics and social influence in directed communication networks. We study the theoretical properties of a boundedly rational model of opinion formation in which individuals aggregate the information they receive from their neighbors by using weights that are a...