Conformism and self-selection in social networks

Vincent Boucher

Journal of Public Economics, 2016, vol. 136, issue C, 30-44

Abstract: I present a model of conformism in social networks that incorporates both peer effects and self-selection. I show that conformism has positive social value and that social welfare can be bounded by network polarization and connectivity measures. I apply the model to empirical data on high school students' participation in extracurricular activities. I find that the local effect of conformism (i.e. the endogenous peer effect for a fixed network structure) ranges 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 policymaker change depending on a school's enrollment. Small schools should encourage shy students to interact more with other students, while large schools should focus on promoting role models within the school.

Keywords: Conformism; Social networks; Peer effects; Social interactions; Network formation (search for similar items in EconPapers)
JEL-codes: C31 C57 D85 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (63)

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Related works:
Working Paper: Conformism and Self-Selection in Social Networks (2014)
Working Paper: Conformism and Self-Selection in Social Networks (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:136:y:2016:i:c:p:30-44

DOI: 10.1016/j.jpubeco.2016.02.005

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