Social Interaction Effects

2011 ◽  
pp. 1454-1458
Author(s):  
Erik den Hartigh
Keyword(s):  
Social Interaction ◽  
Social Interactions ◽  
Interaction Effects ◽  
The Internet ◽  
Buying Behavior ◽  
Economic Agents ◽  
Internet Forum ◽  
Different Types ◽  
Photo Camera ◽  
Social Interaction Effects

Direct social interactions between economic agents (people) are important in determining their choices. When choosing a new car, you will likely ask some of your friends or acquaintances what their opinion is on different types and brands of cars. When choosing a new photo camera, you are likely to visit an Internet forum to see what other peoples’ opinions are on the different brands and types of cameras. These are examples of social interaction. Social interaction effects are therefore important in determining buying behavior. The rise of the Internet has considerably facilitated such social interactions, making social interaction effects even more important.

Extent of Network Effects and Social e Interaction Effects

2010 ◽  
pp. 587-592
Author(s):  
Erik den Hartigh
Keyword(s):  
Social Interaction ◽  
Positive Feedback ◽  
Feedback Loop ◽  
Network Effects ◽  
Interaction Effects ◽  
Network Effect ◽  
Market Outcomes ◽  
Positive Feedback Loop ◽  
Economic Agents ◽  
Social Interaction Effects

In economics and management science, there has been increasing interest in network effects and social interaction effects. Network effects occur when to an economic agent (e.g., a consumer of a firm), the utility of using a product or technology becomes larger as its network of users grows in size (Farrell & Saloner, 1985; Katz & Shapiro, 1985). The network effect may set in motion a positive feedback loop that will cause a product or technology to become more prevalent in the market. Social interaction effects occur when an economic agent’s preference for a product or technology is dependent upon the opinions or expectations of other economic agents. The social interaction effect may set in motion a positive feedback loop that will cause agents to expect that a certain product or technology will become more prevalent in the market. In markets, network effects and social interaction effects appear for example in the emergence of fashions and fads (e.g., Abrahamson & Rosenkopf, 1997; Bikhchandani, Hirschleifer, & Welch, 1992) and in technology adoption and standardization (e.g., Arthur, 1989; Katz et al., 1985). Theory and existing research suggest that the presence of network effects and social interaction effects in markets has important implications for market structure, for market outcomes and, as a consequence, for the behavior and the performance of firms that are active in those markets (e.g., Arthur, 1996; Schilling, 1998; Shapiro & Varian, 1999). An important question is therefore under which conditions these network effects and social interaction effects occur in markets.

scholarly journals Ethnic Composition of Schools and Students’ Educational Outcomes: Evidence from Sweden

2018 ◽  
Vol 53 (2) ◽  
pp. 486-517 ◽  
Author(s):  
Maria Brandén ◽  
Gunn Elisabeth Birkelund ◽  
Ryszard Szulkin
Keyword(s):  
Social Interaction ◽  
Educational Outcomes ◽  
Fixed Effects ◽  
Immigrant Students ◽  
Interaction Effects ◽  
Ethnic Composition ◽  
Swedish Population ◽  
Upper Secondary ◽  
The Impact ◽  
Social Interaction Effects

We examine the impact of ethnic school composition on students’ educational outcomes using Swedish population register data. We add to the literature on the consequences of ethnic school segregation for native and immigrant students by distinguishing social interaction effects from selection and environmental effects through one- and two-way fixed effects models. Our findings demonstrate that native and immigrant students’ grades are relatively unaffected by social interaction effects stemming from the proportion of immigrant schoolmates. However, we find nontrivial effects on their eligibility for upper secondary school. Immigrants’ educational outcomes are weakly positively affected by the proportion of co-ethnics in school.

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