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Segregation in Friendship Networks

Author

Listed:
  • Joan de Martí
  • Yves Zenou

Abstract

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.

Suggested Citation

  • Joan de Martí & Yves Zenou, 2017. "Segregation in Friendship Networks," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 656-708, July.
    • Handle: RePEc:bla:scandj:v:119:y:2017:i:3:p:656-708
    DOI: 10.1111/sjoe.12178
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    Citations

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    Cited by:

    1. Bjerre-Nielsen, Andreas, 2020. "Assortative matching with network spillovers," Journal of Economic Theory, Elsevier, vol. 187(C).
    2. Isabel Melguizo, 2023. "Group representation concerns and network formation," Bulletin of Economic Research, Wiley Blackwell, vol. 75(1), pages 151-179, January.
    3. Ping Sun & Elena Parilina, 2022. "Impact of Utilities on the Structures of Stable Networks with Ordered Group Partitioning," Dynamic Games and Applications, Springer, vol. 12(4), pages 1131-1162, December.
    4. Verdier, Thierry & Zenou, Yves, 2017. "The role of social networks in cultural assimilation," Journal of Urban Economics, Elsevier, vol. 97(C), pages 15-39.
    5. Sato, Yasuhiro & Zenou, Yves, 2020. "Assimilation patterns in cities," European Economic Review, Elsevier, vol. 129(C).
    6. Roy Cerqueti & Luca De Benedictis & Valerio Leone Sciabolazza, 2022. "Segregation with social linkages: Evaluating Schelling’s model with networked individuals," Metroeconomica, Wiley Blackwell, vol. 73(2), pages 384-440, May.
    7. Kazutoshi Miyazawa & Hikaru Ogawa & Toshiki Tamai, 2018. "Tax Competition and Fiscal Sustainability," CIRJE F-Series CIRJE-F-1103, CIRJE, Faculty of Economics, University of Tokyo.
    8. Jiménez-Martínez, Antonio & Melguizo-López, Isabel, 2022. "Making friends: The role of assortative interests and capacity constraints," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 431-465.
    9. Chenghong Luo & Ana Mauleon & Vincent Vannetelbosch, 2021. "Network formation with myopic and farsighted players," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1283-1317, June.
    10. Foerster, Manuel & Mauleon, Ana & Vannetelbosch, Vincent J., 2021. "Shadow links," Journal of Economic Theory, Elsevier, vol. 197(C).
      • FOERSTER Manuel, & MAULEON Ana, & VANNETELBOSCH Vincent,, 2018. "Shadow links," LIDAM Discussion Papers CORE 2018030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
      • Foerster, Manuel & Mauleon, Ana & Vannetelbosch, Vincent, 2021. "Shadow links," LIDAM Reprints CORE 3171, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Gergely Horváth, 2020. "The Impact of Social Segregation on the Labor Market Outcomes of Low‐Skilled Workers," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(1), pages 3-37, January.
    12. Melguizo Lopez, Isabel, 2019. "Group size and network formation," MPRA Paper 91428, University Library of Munich, Germany.
    13. NAKAGAWA Mariko & SATO Yasuhiro & YAMAMOTO Kazuhiro, 2019. "Segregation and Public Spending under Social Identification," Discussion papers 19096, Research Institute of Economy, Trade and Industry (RIETI).
    14. Ping Sun & Elena Parilina, 2024. "Networks with nonordered partitioning of players: stability and efficiency with neighborhood-influenced cost topology," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 99(3), pages 271-305, June.
    15. Hong, Jieying & Zhang, Rui, 2021. "Socialization, job search and integration," Economic Modelling, Elsevier, vol. 101(C).
    16. Ping Sun & Elena Parilina, 2024. "Dynamic Network Formation with Ordered Partitioning and Incomplete Information," Dynamic Games and Applications, Springer, vol. 14(4), pages 921-958, September.
    17. Luo, Chenghong & Mauleon, Ana & Vannetelbosch, Vincent, 2024. "Destabilizing segregation in friendship networks with farsighted agents," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 1-16.
    18. Luo, Chenghong & Mauleon, Ana & Vannetelbosch, Vincent, 2022. "Friendship networks with farsighted agents," LIDAM Discussion Papers CORE 2022021, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    19. Eguia, Jon X., 2017. "Discrimination and assimilation at school," Journal of Public Economics, Elsevier, vol. 156(C), pages 48-58.

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