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.

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

About the book

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