Interactions-Based Models

133 Pages Posted: 19 Aug 2000 Last revised: 17 Sep 2010

See all articles by William A. Brock

William A. Brock

University of Wisconsin, Madison - Department of Economics; University of Missouri at Columbia - Department of Economics

Steven N. Durlauf

University of Chicago; National Bureau of Economic Research (NBER)

Date Written: August 2000

Abstract

This paper describes a range of methods which have been proposed to study interactions in economic and social contexts. By interactions, we refer to interdependences between individual decisions which are not mediated by markets. These types of models have been employed to understand phenomena ranging from the effect of neighborhoods on the life prospects of children to the evolution of political party platforms. We provide a general choice-based framework for modeling such interactions which subsumes a number of specific models which have been studied. This framework illustrates the relationship between interactions-based models and models in statistical mechanics. Our analysis is then extended to the econometrics of these models, with an emphasis on the identification of group-level influences on individual behavior. Finally, we review some of the empirical work on interactions which has appeared in the social science literature.

Suggested Citation

Brock, William A. and Durlauf, Steven N., Interactions-Based Models (August 2000). NBER Working Paper No. t0258. Available at SSRN: https://ssrn.com/abstract=239635

William A. Brock (Contact Author)

University of Wisconsin, Madison - Department of Economics ( email )

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Madison, WI 53706
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608-263-6655 (Phone)
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University of Missouri at Columbia - Department of Economics ( email )

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Steven N. Durlauf

University of Chicago ( email )

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Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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