Social interactions and spillovers

• 成果类型: Article
• 署名作者: Cabrales, Antonio; Calvo-Armengol, Antoni; Zenou, Yves
• 署名单位: Stockholm University; Autonomous University of Barcelona; Universidad Carlos III de Madrid
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2010.10.010
• 发表日期: 2011
• 页码: 339-360
• 关键词: Peer effects; network formation; welfare

摘要

The aim of this paper is to provide a tractable model where both socialization (or network formation) and productive efforts can be analyzed simultaneously. This permits a full-fledged equilibrium/welfare analysis of network formation with endogenous productive efforts and heterogeneous agents. We show that there exist two stable interior equilibria, which we can Pareto rank. The socially efficient outcome lies between these two equilibria. When the intrinsic returns to production and socialization increase, all equilibrium actions decrease at the Pareto-superior equilibrium, while they increase at the Pareto-inferior equilibrium. In both cases, the percentage change in socialization effort is higher (in absolute value) than that of the productive effort. (C) 2010 Elsevier Inc. All rights reserved.