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Title: Conformism and Self-Selection in Social Networks
Authors: Boucher, Vincent
Keywords: Conformism
Peer effects
Network formation
Issue Date: 2014-11
Series/Report no.: Cahiers du CIRPÉE;14-24
Abstract: I present a model of conformism in social networks that incorporates both peer effects and self-selection. I find that equilibrium behaviors are linked through the Laplacian matrix of the equilibrium network. I show that conformism has positive social value and that social welfare can be bounded by network centrality and connectivity measures. I apply the model using empirical data on high school student participation in extracurricular activities. I find that the local effects of conformism (i.e. endogenous peer effect for a fixed network structure) range from 7.5% to 45%, depending on the number of peers that an individual has. Simulations show that the optimal policies of an inequality-averse policy-maker change in relation to the size of a school. Small schools should encourage shy students to integrate more with other students, while large schools should focus on promoting role models within the school.
URI: https://depot.erudit.org/id/004004dd
Appears in Collections:Cahiers de recherche du CIRPÉE

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