The Economic Consequences of Social Network Structure

65 Pages Posted: 31 Jan 2015 Last revised: 25 Feb 2016

See all articles by Matthew O. Jackson

Matthew O. Jackson

Stanford University - Department of Economics; Santa Fe Institute; Canadian Institute for Advanced Research (CIFAR)

Brian W. Rogers

Northwestern University - Kellogg School of Management

Yves Zenou

Monash University - Department of Economics; Stockholm University; Research Institute of Industrial Economics (IUI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: February 2016

Abstract

We survey the literature on the economic consequences of the structure of social networks. We develop a taxonomy of 'macro' and 'micro' characteristics of social interaction networks and discuss both the theoretical and empirical findings concerning the role of those characteristics in determining learning, diffusion, decisions, and resulting behaviors. We also discuss the challenges of accounting for the endogeneity of networks in assessing the relationship between the patterns of interactions and behaviors.

Keywords: Social networks, social economics, homophily, diffusion, centrality measures, endogeneity, network formation

JEL Classification: D85, C72, L14, Z13

Suggested Citation

Jackson, Matthew O. and Rogers, Brian W. and Zenou, Yves, The Economic Consequences of Social Network Structure (February 2016). Available at SSRN: https://ssrn.com/abstract=2467812 or http://dx.doi.org/10.2139/ssrn.2467812

Matthew O. Jackson (Contact Author)

Stanford University - Department of Economics ( email )

Landau Economics Building
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Stanford, CA 94305-6072
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1-650-723-3544 (Phone)

HOME PAGE: http://www.stanford.edu/~jacksonm

Santa Fe Institute

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Canadian Institute for Advanced Research (CIFAR) ( email )

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Canada

Brian W. Rogers

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

HOME PAGE: http://www20.kellogg.northwestern.edu/facdir/facpage.asp?sid=10018

Yves Zenou

Monash University - Department of Economics ( email )

Australia

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

Research Institute of Industrial Economics (IUI) ( email )

P.O. Box 5501
S-114 85 Stockholm
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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