Networks, Markets, and Inequality

• 成果类型: Article
• 署名作者: Gagnon, Julien; Goyal, Sanjeev
• 署名单位: University of Cambridge; University of Cambridge; University of Cambridge
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20150635
• 发表日期: 2017
• 页码: 1-30
• 关键词: Mobile phones; TOURISM; institutions; MODEL

摘要

The interaction between community and markets remains a central theme in the social sciences. The empirical evidence is rich: in some instances, markets strengthen social ties, while in others they undermine them. The impact of markets on inequality and welfare also varies widely. This paper develops a model where individuals in a social network choose whether to participate in their network and whether to participate in the market. We show that individual behavior is defined by the q-core of the network and the key to understanding the conflicting evidence is whether the market and the network are complements or substitutes.