Economics of Networks
The aim of this course is to present the relatively recent literature on social networks by exposing the economics, sociology and physics/applied mathematics approaches, showing their similarities and differences and ...
General Course Description
The aim of this course is to present the relatively recent literature on social networks by exposing the economics, sociology and physics/applied mathematics approaches, showing their similarities and differences. We will expose, in particular, the two main ways of modeling network formation. While the physics/applied mathematics approach is capable of reproducing most observed networks, it does not explain why they emerge. On the contrary, the economics approach is very precise in explaining why networks emerge but does a poor job in matching real-world networks. We also analyze behaviors on networks, which take networks as given and focus on the impact of their structure on individuals’ outcomes. Using a game-theoretical framework, we then compare the results with those obtained in sociology. We will then focus on some applications of social networks: labor-market networks, R&D networks and crime networks.
Schedule:
September, 30:
10-00 - 11-30 Motivation, Definitions and Descriptive Evidence
11-45 - 13-15 Theories of Network Formation I
14-15 - 15-45 Theories of Network Formation II
16-00 - 17-30 Games on Networks I
October, 01:
10-00 - 11-30 Games on Networks and Network Formation
11-45 - 13-15 Applications to Labor Economics I
14-15 - 15-45 Applications to Labor Economics II
16-00 - 17-30 Applications Crime
October, 02:
10-00 - 11-30 Empirical Aspects of Social Networks I
11-45 - 13-15 Empirical Aspects of Social Networks II