Segregation with Social Linkages: Evaluating Schelling's Model with Networked Individuals

arXiv:2001.02959v1

38 Pages Posted: 9 Mar 2020

See all articles by Roy Cerqueti

Roy Cerqueti

University Sapienza Rome

Luca De Benedictis

University of Macerata; Luiss University

Valerio Leone Sciabolazza

University of Naples

Date Written: December 30, 2019

Abstract

This paper generalizes the original Schelling (1969, 1971a,b, 2006) model of racial and residential segregation to a context of variable externalities due to social linkages. In a setting in which individuals' utility function is a convex combination of a heuristic function à la Schelling, of the distance to friends, and of the cost of moving, the prediction of the original model gets attenuated: the segregation equilibria are not the unique solutions. While the cost of distance has a monotonic pro-status-quo effect, equivalent to that of models of migration and gravity models, if friends and neighbours are formed following independent processes the location of friends in space generates an externality that reinforces the initial con figuration if the distance to friends is minimal, and if the degree of each agent is high. The e ect on segregation equilibria crucially depends on the role played by network externalities.

Keywords: Schelling’s Segregation Model, Networks, Network Externality

JEL Classification: B55, D62, D85, D90

Suggested Citation

Cerqueti, Roy and De Benedictis, Luca and Leone Sciabolazza, Valerio, Segregation with Social Linkages: Evaluating Schelling's Model with Networked Individuals (December 30, 2019). arXiv:2001.02959v1, Available at SSRN: https://ssrn.com/abstract=3534543 or http://dx.doi.org/10.2139/ssrn.3534543

Roy Cerqueti

University Sapienza Rome ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

Luca De Benedictis

University of Macerata ( email )

Via Crescimbeni 20
Macerata, MC 62100
Italy

HOME PAGE: http://docenti.unimc.it/luca.debenedictis

Luiss University ( email )

Viale Romania 32
Rome, 00198
Italy

Valerio Leone Sciabolazza (Contact Author)

University of Naples

Via Cinthia Monte S. Angelo
Via Cinthia Monte S. Angelo
Naples, 80123
Italy

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