2011
DOI: 10.1016/j.geb.2010.10.010
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Social interactions and spillovers

Abstract: 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 fullfledged 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, al… Show more

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Cited by 109 publications
(83 citation statements)
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“…Taken together, these facts are consistent with the hypothesis that advisors care about supporting the career of their advisees even if that means a smaller influence of their own fields. An additional important finding is that larger fields (more productive and exhibiting more intergenerational field similarity) exhibit more cooperation among researchers, which is consistent with complementarities between socialization and productive efforts as in Cabrales et al (2011) and Albornoz et al (2016).…”
Section: Introductionsupporting
confidence: 71%
“…Taken together, these facts are consistent with the hypothesis that advisors care about supporting the career of their advisees even if that means a smaller influence of their own fields. An additional important finding is that larger fields (more productive and exhibiting more intergenerational field similarity) exhibit more cooperation among researchers, which is consistent with complementarities between socialization and productive efforts as in Cabrales et al (2011) and Albornoz et al (2016).…”
Section: Introductionsupporting
confidence: 71%
“…It is, however, well-known that non-cooperative games of network formation with nominal lists of intended links are plagued by coordination problems (Myerson, 1991;Jackson and Wolinsky, 1996;Jackson, 2008;Cabrales et al, 2011). This is why it is extremely hard, if not impossible, to provide a full-fledged characterization of all possible stable networks.…”
mentioning
confidence: 99%
“…In particular, our framework is a generalization of the model in König et al (2014). This part of the paper is also related to the literature that combines strategic interactions with network formation, as in Bramoullè et al (2004), Cabrales et al (2010), Jackson and Watts (2002), , Goyal and Joshi (2003). 7 Relative to this literature, the framework that we provide is general and dynamic, i.e.…”
mentioning
confidence: 85%