Abstract:
This paper proposes an original mechanism to elicit latent social networks. Subjects are invited to reveal their friends’ name and surname, together with a score measuring the strength of relationship. According to the mechanism, subjects are rewarded of a fixed price either a) when they do not name anybody or b) when the scores of a randomly selected (bidirectional) link are sufficiently close. We test the mechanism’s performance in the field. Our main results are: i) a very large percentage of links (75%) were corresponded. ii) the mechanism largely captures strong friendship relations and practically ignores weak relations. A simple model of friend—regarding preferences is developed to explain this evidence.