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Social groups and social network formation

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  • Tarbush, Bassel
  • Teytelboym, Alexander

Abstract

We present a dynamic model of social network formation in which a fixed number of agents interact in overlapping social groups. We derive several results on the formation of links in such networks, including results on the degree distribution, on comparative statics relating degree and group size, and on the dynamics of homophily. In particular, we derive comparative statics showing that degree is typically positively related to social group size but negatively related to the size of the overlap across multiple social groups. This is supported by evidence from a Facebook dataset. We also show that homophily over an agent's lifespan in the network can be non-monotonic, reaching a global maximum in some period before eventually decreasing.

Suggested Citation

  • Tarbush, Bassel & Teytelboym, Alexander, 2017. "Social groups and social network formation," Games and Economic Behavior, Elsevier, vol. 103(C), pages 286-312.
    • Handle: RePEc:eee:gamebe:v:103:y:2017:i:c:p:286-312
    DOI: 10.1016/j.geb.2015.11.004
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Calvano, Emilio & Immordino, Giovanni & Scognamiglio, Annalisa, 2022. "What drives segregation? Evidence from social interactions among students," Economics of Education Review, Elsevier, vol. 90(C).
    3. Jasmina Arifovic & Giuseppe Danese, 2018. "Homophily and Social Norms in Experimental Network Formation Games," Games, MDPI, vol. 9(4), pages 1-22, October.

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    More about this item

    Keywords

    Social groups; Dynamic network formation; Social networks; Homophily;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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