Networks, Markets, and Inequality

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 1
Pages: 1-30

Authors (2)

Julien Gagnon (not in RePEc) Sanjeev Goyal (University of Cambridge)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The interaction between community and markets remains a central theme in the social sciences. The empirical evidence is rich: in some instances, markets strengthen social ties, while in others they undermine them. The impact of markets on inequality and welfare also varies widely. This paper develops a model where individuals in a social network choose whether to participate in their network and whether to participate in the market. We show that individual behavior is defined by the q-core of the network and the key to understanding the conflicting evidence is whether the market and the network are complements or substitutes.

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:1:p:1-30
Journal Field
General
Author Count
2
Added to Database
2026-01-25