Networks in Economics

Date: 2012-06
By: Zenou, Yves
We provide an overview on networks in economics. We first look at the theoretical aspects of network economics using a game-theoretical approach. We derive some results on games on networks and network formation. We also study what happens when agents choose both links and actions. We then examine how these models can be used to address some applied and empirical-relevant questions by mainly focusing on labor-market networks and crime networks. We provide some empirical evidence on these two types of networks and address some policy implications of the models.
Keywords: criminal networks; games on networks; labor networks; network formation; Social networks
JEL: A14