Social Clubs and Social Networks

2021 ◽  
Vol 13 (1) ◽  
pp. 224-251
Author(s):  
Chaim Fershtman ◽  
Dotan Persitz

We present a strategic network formation model based on membership in clubs. Individuals choose affiliations. The set of all memberships induces a weighted network where two individuals are directly connected if they share a club. Two individuals may also be indirectly connected using multiple memberships of third parties. Individuals gain from their position in the induced network and pay membership fees. We study the club congestion model where the weight of a link decreases with the size of the smallest shared club. A trade-off emerges between the size of clubs, the depreciation of indirect connections, and the membership fee. (JEL D71, D85, Z13)

2018 ◽  
Author(s):  
Rhea M Howard ◽  
Annie C. Spokes ◽  
Samuel A Mehr ◽  
Max Krasnow

Making decisions in a social context often requires weighing one's own wants against the needs and preferences of others. Adults are adept at incorporating multiple contextual features when deciding how to trade off their welfare against another. For example, they are more willing to forgo a resource to benefit friends over strangers (a feature of the individual) or when the opportunity cost of giving up the resource is low (a feature of the situation). When does this capacity emerge in development? In Experiment 1 (N = 208), we assessed the decisions of 4- to 10-year-old children in a picture-based resource tradeoff task to test two questions: (1) When making repeated decisions to either benefit themselves or benefit another person, are children’s choices internally consistent with a particular valuation of that individual? (2) Do children value friends more highly than strangers and enemies? We find that children demonstrate consistent person-specific welfare valuations and value friends more highly than strangers and enemies. In Experiment 2 (N = 200), we tested adults using the same pictorial method. The pattern of results successfully replicated, but adults’ decisions were more consistent than children’s and they expressed more extreme valuations: relative to the children, they valued friends more and valued enemies less. We conclude that despite children’s limited experience allocating resources and navigating complex social networks, they behave like adults in that they reference a stable person-specific valuation when deciding whether to benefit themselves or another and that this rule is modulated by the child’s relationship with the target.


Author(s):  
Matthew O. Jackson ◽  
Brian W. Rogers ◽  
Yves Zenou

What is the role of social networks in driving persistent differences between races and genders in education and labor market outcomes? What is the role of homophily in such differences? Why is such homophily seen even if it ends up with negative consequences in terms of labor markets? This chapter discusses social network analysis from the perspective of economics. The chapter is organized around the theme of externalities: the effects that one’s behavior has on others’ welfare. Externalities underlie the interdependencies that make networks interesting to social scientists. This chapter discusses network formation, as well as interactions between people’s behaviors within a given network, and the implications in a variety of settings. Finally, the chapter highlights some empirical challenges inherent in the statistical analysis of network-based data.


2006 ◽  
Vol 25 (4) ◽  
pp. 237-246
Author(s):  
Tomas Hellström

This paper presents a qualitative study of mechanisms enabling social network formation in the R&D unit of a large technology-based organization. Drawing on interviews with 37 high-level technical and administrative unit members, a number of social network enablers could be discerned, which related to the need for effective location mechanisms, special “enrolment spaces”, and mechanisms for forging contacts. It was also possible to identify a number of higher-order factors for facilitation of network formation, namely hierarchical enablers and communicative and assimilative factors. Based on these results, the paper makes suggestions as to the theoretical and practical significance of social network enabling mechanisms in R&D organizations.


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