Social norms in networks

• 成果类型: Article
• 署名作者: Ushchev, Philip; Zenou, Yves
• 署名单位: HSE University (National Research University Higher School of Economics); Monash University; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2019.104969
• 发表日期: 2020
• 关键词: social norms; Conformism; Local-average model; welfare; Anti-conformism; network formation

摘要

Although the linear-in-means model is the workhorse model in empirical work on peer effects, its theoretical properties are understudied. In this study, we develop a social-norm model that provides a micro-foundation of the linear-in-means model and investigate its properties. We show that individual outcomes may increase, decrease, or vary non-monotonically with the taste for conformity. Equilibria are usually inefficient and, to restore the first best, the planner needs to subsidize (tax) agents whose neighbors make efforts above (below) the social norms. Thus, giving more subsidies to more central agents is not necessarily efficient. We also discuss the policy implications of our model in terms of education and crime. (C) 2019 Elsevier Inc. All rights reserved.