2017

Segregation in Friendship Networks

Reprint No. 2017:35

Author(s): Joan de Martí and Yves ZenouYear: 2017 Title: Scandinavian Journal of Economics Volume (No.): 119 (3) Pages: 656–708
Online article (restrictions may apply)


We analyze a network-formation model where agents belong to different communities. Both individual benefits and costs depend on direct as well as indirect connections. Benefits of an indirect connection decrease with distance in the network, while the cost of a link depends on the type of agents involved. Two agents from the same community always face a low linking cost, while the cost of forming a relationship between two agents from different communities diminishes with the rate of exposure of each of them to the other community. We find that socialization among the same type of agent can be weak even if the cost of maintaining links within one’s own type is very low. Our model also suggests that policies aimed at reducing segregation are socially desirable only if they reduce the within-community cost differential by a sufficiently large amount.


Reference:
de Martí, Joan och Yves Zenou (2017), "Segregation in Friendship Networks". Scandinavian Journal of Economics 119(3), 656–708.

Interdisciplinary European Studies

The European Union in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

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