Networks, Markets, and Inequality
Julien Gagnon and
American Economic Review, 2017, vol. 107, issue 1, 1-30
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.
JEL-codes: D63 D85 J15 L82 O15 Z13 Z31 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.20150635
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... NCKdfbSvvtGGWSuyxYWy (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... VrZIRxELwGWX3O1sNGYT (application/zip)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:107:y:2017:i:1:p:1-30
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Esther Duflo
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().