EconPapers    
Economics at your fingertips  
 

Networks of Relations and Social Capital

Steffen Lippert () and Giancarlo Spagnolo

No 5078, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We model networks of relational (or implicit) contracts, exploring how sanctioning power and equilibrium conditions change under different network configurations and information transmission technologies. In our model relations are the links, and the value of the network lies in its ability to enforce cooperative agreements that could not be sustained if agents had no access to other network members’ sanctioning power and information. We identify conditions for network stability and in-network information transmission as well as conditions under which stable sub-networks inhibit more valuable larger networks. The model provides formal definitions for individual and communities’ ‘social capital’ in the spirit of Coleman and Putnam.

Keywords: collusion; cooperation; embeddedness; end-network effect; implicit contracts; indirect multimarket contact; industrial districts; networks; peering agreements; relational contracts; social capital; social relations (search for similar items in EconPapers)
JEL-codes: D23 D43 L13 L29 O17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-net
Date: 2005-05
View list of references View citations in EconPapers

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP5078.asp (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP5078.asp

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers
Address: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG
Series data maintained by ().

 
Page updated 2008-07-06
Handle: RePEc:cpr:ceprdp:5078